It is the highest inflation since the euro came into existence: In September, the price increase in the international community climbed to 9.9 percent. Germany hit it even harder. This increases the pressure on the ECB.
Inflation in the euro area stayed just below the ten percent mark in September. Driven by a sustained surge in energy prices, consumer prices rose by 9.9 percent year-on-year in September, according to the statistics office Eurostat. Inflation in the international community has never been so high since the euro came into existence. A first estimate by Eurostat at the end of September even resulted in a rate of 10.0 percent. In August inflation was 9.1 percent. For Germany, Eurostat now put the inflation rate at 10.9 percent.
Energy prices rose particularly sharply in September. Within a year they increased by 40.7 percent. In August, the price increase was 38.6 percent. Grocery, alcohol and tobacco prices rose 11.8 percent from 10.6 percent in August. Non-energy industrial goods prices rose 5.5 percent from 5.1 percent in the previous month. And prices for services also rose in September: they rose by 4.3 percent, compared to 3.8 percent in August.
The pressure is therefore increasing for the ECB to take countermeasures at the upcoming monetary policy meeting next week with another strong interest rate hike. In the fight against record inflation, the ECB has already completed the turnaround on interest rates. In quick succession in the summer, it increased the key interest rate in two steps to 1.25 percent and the deposit rate, which is decisive on the financial markets, to 0.75 percent.
ECB President Christine Lagarde had also promised further steps upwards. Several monetary watchdogs have recently campaigned for the key rates to be raised again by 0.75 percentage points in a mega interest rate hike on October 27th, as was the case in September. Bundesbank President Joachim Nagel recently spoke out in favor of a robust rate hike at the upcoming monetary policy meeting.
