Energy plus services are predicted to raise Eurozone inflation in September.

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Extra expensive energy and services raised Eurozone inflation in September, as expected, according to statistics released on Wednesday, with core inflation also rising.

Eurostat, the European Union’s statistics office, reported that consumer prices in the 19 Eurozone countries grew 0.5 percent month on month in September, for a 3.4 percent year on year increase, as previously anticipated by Eurostat.

While the headline figure was significantly above the European Central Bank’s target of 2%, the overshoot was mostly due to a 17.6 percent year-on-year increase in energy prices and a 2.0 percent increase in food, alcohol, and tobacco prices.

Without these volatile goods, or what the ECB refers to as core inflation, prices rose 0.4 percent month on month for a 1.9 percent year on year increase, which was faster than the 1.6 percent annual rise in August. According to Eurostat, energy prices accounted for about half of the overall year-on-year inflation measurement, adding 1.63 points to the final result.

Services increased by 0.72 point, and non-energy industrial products prices increased by 0.57 point. The ECB anticipates that consumer prices will begin to fall again in 2022.

Story by : Norvisi Mawunyegah