Eurozone inflation hit a new record in September and is expected to rise further in the coming months amid higher energy prices, increasing the likelihood of a lengthier and deeper economic contraction at year-end.
The consumer price index–a measure of what consumers pay for goods and services–increased 10.0% in September compared with the same month a year earlier after climbing 9.1% in August, according to preliminary data from Eurostat, the European Union’s statistics agency.
The reading beats the 9.7% consensus forecast from economists polled by The Wall Street Journal.
September’s rise in the inflation rate was driven by energy prices, with prices up 40.8% year-on-year in September after a 38.6% increase in August.
There was also an acceleration of food, alcohol and tobacco prices, which rose 11.8% on year compared with a 10.6% rise in August, data from Eurostat showed.
The core consumer price index–which excludes the more volatile categories of food and energy–rose 4.8% on year in September, up from 4.3% in August.
Economists expect eurozone inflation to increase further in the coming months, remaining above double digits. Elevated inflation adds pressure on the European Central Bank, which raised key interest rates by 75 basis points in September and is expected to increase rates again by 75 basis points at its next meeting in October.