Euro Zone Inflation Surges

FrankfurtEuro zone inflation jumped to 3.8% in September from 3.2%.

Inflation sits 1.8 points over the European Central Bank’s 2% target, bolstering calls for more hikes.

Fuel, natural gas and food drove it, Eurostat data show, while core inflation edged up only to 2.5% from 2.4%.

Economists say the bank may sit out hikes as France’s borrowing premium over Germany hits multi-decade highs.

Investors see a 29 October hike as negligible and price the next fully only in January.

Sources: Reuters