Europe, Another Giant Step?... September Inflation Rate Hits 10%

First Two-Digit Number After Statistical Compilation

Photo by Reuters

The consumer price index in the Eurozone (19 countries using the euro) rose by 10% in September compared to a year earlier (flash estimate), Eurostat, the EU's statistical office, announced on the 30th (local time).

This marks the highest level since related statistics began being compiled in 1997 and is the first time the inflation rate has reached double digits.

As a result, the Eurozone's inflation rate has set a new record for 11 consecutive months from November last year through September this year.

By sector, Eurostat explained that energy prices soared 40.8% compared to a year earlier, surpassing the previous month's record of 38.6%.

This is due to the soaring prices of energy such as natural gas and electricity following Russia's invasion of Ukraine.

Food, alcoholic beverages, and tobacco also rose by 11.6%, industrial goods by 5.6%, and service prices by 4.3%, driving the overall inflation.

Amid unprecedented high inflation, the European Central Bank (ECB) is also likely to take another "giant step" by raising the key interest rate by 0.75 percentage points (P) at its next meeting scheduled for the 27th of next month.

Previously, the ECB implemented a "big step" by raising the key interest rate by 0.5%P for the first time in 11 years on July 11, followed by a 0.75%P increase on the 8th of this month.