Consumer prices rose 3.8% in the year to September, almost double the European Central Bank's target.
Economic Commentary
13 storiesEnergy and fuel costs drove a September overshoot that leaves the rate close to double the European Central Bank's target.
Consumer prices rose 3.8 per cent in the year to September, up from 3.2 per cent in August and above the 3.6 per cent markets had expected.
Energy prices pushed inflation in the bloc's largest economies to multiyear highs, and analysts now expect the euro-wide figure to overshoot too.
Freddie Mac's benchmark reached 7.03% this week, days after the Federal Reserve raised its policy rate again, and the move is already reaching buyers, sellers and builders.
The Paris-based body raised its 2026 world growth projection while warning that a long Middle East conflict could still take a heavy toll.
Kristalina Georgieva warned that repeated shocks have pushed debt levels higher just as central banks tighten, and Britain's August borrowing figures show the squeeze arriving.
The crude risk premium is draining as Hormuz traffic and diplomacy improve, but refined fuels are still squeezing farmers and freight.
Brent is trading above one hundred dollars, diesel is at a record in the United States and the political response has started in Europe.
Petrol and diesel drove British inflation to a five-month high two days before a rate decision.
The Fed, the Bank of England and the Bank of Japan all decide within days, with the ECB already moved and the Swiss National Bank still at zero.
The bond sell-off has reached household budgets, and August existing-home sales dropped to their weakest level in more than a year.
The European Central Bank lifted borrowing costs again on Thursday and revised both its growth and its inflation projections upward.