Energy Costs Spark Inflation Surge Across Europe
- On Wednesday, September inflation data showed France's rate rose to 3.4 per cent, Spain to 5 per cent, and Italy to 4.1 per cent, all exceeding the European Central Bank's 2 per cent target. Energy-price shocks from the Iran war drove the surge.
- To prevent rapid price growth, the European Central Bank has lifted rates twice this year. Under its "Adverse." scenario, the bank sees inflation reaching 4 per cent in the fourth quarter, aligning with current energy costs.
- With winter approaching and Middle East tensions unresolved, a correction in energy prices is unlikely "any time soon," said Rory Fennessy, senior European economist at Oxford Economics. Markets expect four more interest rate hikes over the next year.
- European Central Bank chief Christine Lagarde said on Monday that a moderate policy response remains appropriate, as the inflation surge has yet to generate dangerous second-round effects across Europe.
- Germany's inflation rose sharply in five key states, suggesting the national rate could increase. Economists polled by Reuters expect inflation in the bloc to reach 3.6 per cent in September, up from 3.2 per cent in August.
77 Articles
77 Articles
INFLATION IN THE EUROZONE IS ACCELERATING AT A RECORD PACE
INFLATION IN THE EUROZONE IS ACCELERATING AT A RECORD PACE - Financial TimesIn September, inflation accelerated more than expected in all four major eurozone economies due to tensions in the Middle East, which led to a sharp increase in fuel prices...
Inflation has accelerated beyond expectations in four of the euro area's largest economies, on the basis of energy costs. Data from France, Italy, Germany and Spain increase pressure on the European Central Bank (ECB), while financial markets anticipate further increases in interest rates.
Inflation Grips EU’s Top Economies as Oil Prices Pummel Region
Inflation in Europe’s top economies jumped to the highest level in years following the latest upswing in energy markets, focusing attention on what the European Central Bank will do next to tame prices.
Faster-than-expected inflation in the eurozone's biggest economies makes it more likely that the European Central Bank will raise interest rates again this year to keep price growth under target, further pushing up borrowing costs at a time when governments are already facing the highest bond yields since the 2012 debt crisis.
DECRYPTAGE - Inflation (to 3% in September) is expected to accelerate, driven by rising energy prices and sharp increases in fresh products, and is expected to spread to consumer products sold in supers, supers and hypers.
Coverage Details
Bias Distribution
- 39% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
