Eurozone inflation jumped to 3.8 percent in September, the highest level in three years, as the war in the Middle East fueled a surge in energy costs, official data showed Friday. The figure for the 21-country euro area was up sharply from 3.2 percent in August and remains well above the European Central Bank's two-percent target, raising the likelihood of another interest rate increase. The September reading published by the statistical office of the European Union was slightly higher than the 3.7 percent forecast by economists for Bloomberg. As the US war against Iran drags on, the conflict has caused major disruptions to fuel supplies from the Middle East, including from the Strait of Hormuz, a key energy trade route. Energy price increases surged to 18.8 percent in September, up from 14.3 percent a month earlier, AFP quoted Eurostat as saying. Core inflation, which strips out volatile energy and food prices, rose to 2.5 percent last month from 2.4 percent in August. Meanwhile, food and drinks inflation increased to 1.4 percent from 1.1 percent in August. Eurozone inflation was last above 3.8 percent in September 2023, when it stood at 4.3 percent.
