Rising oil prices drive up inflation in Europe, with Spain being the first to reach 5%

Driven by a new round of increases in the energy market, inflation rates in major European economies have soared to multi-year highs. Inflation data for September in Germany, France, Italy, and Spain all exceeded expectations, with Spain's inflation rate reaching 5%, the highest since 2023.

Fuel costs are the main driver, expected to push the overall inflation rate in the Eurozone towards 4%. Although the market anticipated a September inflation rate of 3.7% for the Eurozone, data from multiple countries exceeded expectations, leading to a decrease in investor bets on an interest rate hike by the European Central Bank in October.