In September, inflation across the eurozone rose to 2.2 %, the highest level in five months, pushed by stronger price increases in services and energy goods. Core inflation (which strips out volatile items like food and energy) held steady at 2.3 %, signaling that underlying price pressures remain entrenched. The rise strengthens the case for the European Central Bank to maintain its current interest rate stance rather than moving prematurely.
Germany is especially exposed: as a major exporter and a country with close ties to eurozone monetary policy, rising inflation affects its competitiveness, consumer prices, and the calculus for German fiscal and industrial policies. Berlin will be watching EU monetary moves and inflation data closely for cues on how to balance investment, wage growth, and export pressures.
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