Eurozone Inflation Hits Multiyear Highs in Germany, France, Italy on Energy Costs

Consumer price growth in the eurozone's three largest economies accelerated to multiyear highs in September 2026, driven by surging energy costs tied to Middle East tensions, data from national statistics agencies showed Wednesday. The readings raise the odds the European Central Bank will raise interest rates again at its Oct. 29 meeting. Harmonized inflation rose to 3.3% in Germany, 3.4% in France and 4.1% in Italy year-over-year, up from 2.9%, 2.6% and 3.2% in August, respectively. France and Italy topped Wall Street Journal economist forecasts; Germany matched. The levels mark the highest since December 2023 in Germany, January 2024 in France and September 2023 in Italy. Fuel prices jumped on escalating Middle East tensions, while food inflation also accelerated. Spain and Belgium reported growth well above the ECB's 2% target. The ECB raised rates earlier this month, with President Christine Lagarde citing oil and gas prices. Investors are split on whether the bank hikes again on Oct. 29.