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Eurozone inflation jumps to 3.8% in September 2026

By Drooid · Oct 2, 2026, 10:15 PM UTC · How we work

Summary

Eurostat Reports Inflation Rise

Eurostat reported euro-area annual inflation rose to 3.8% in September 2026.
Energy prices drove the sharpest rise, posting an 18.8% annual increase versus 14.3% in August.
Core inflation, excluding energy and food, edged up to 2.5% from 2.4%.
Lithuania recorded the highest national inflation at 6.1%, with Bulgaria at 5.6%.
Eurostat will release the full September HICP data on 16 October 2026.

Summary

France Protests Fuel

French-German bond spread reached multi-decade highs as investors worry about France’s debt sustainability.
European Central Bank (ECB) deposit rate sits at 2.5 %, and markets price up to three further hikes this year.
Germany will cut its fuel tax by roughly 17 cents per litre from October through year-end.
Street protests have erupted in France over soaring fuel prices, adding political pressure on policymakers.

Summary

Lagarde Rejects Energy-Driven Hikes

Energy price spikes are tied to the United States-Iran war, unsettling oil and gas markets.
ECB President Christine Lagarde told the European Parliament on 28 September rates will not mirror energy price moves step-for-step.
Markets assign a 91% chance of an ECB rate hike on 29 October.
Investors forecast up to four additional ECB rate increases during 2026.

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Eurostat Reports Inflation Rise

Eurostat reported euro-area annual inflation rose to 3.8% in September 2026.
Energy prices drove the sharpest rise, posting an 18.8% annual increase versus 14.3% in August.
Core inflation, excluding energy and food, edged up to 2.5% from 2.4%.
Lithuania recorded the highest national inflation at 6.1%, with Bulgaria at 5.6%.
Eurostat will release the full September HICP data on 16 October 2026.

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