Eurozone Inflation Hits Three-Year High of 4% as Energy Prices Surge

2026, November 4

European Union / Eurozone

Inflation across the eurozone accelerated to 4.0% in October, its highest level in three years, compared with 3.8% in September. Energy prices were the main contributor, increasing by 20.8% compared with the same month last year. Core inflation, which excludes energy, food, alcohol and tobacco, remained unchanged at 2.5%.

The continuing energy shock associated with the US–Iran war is increasing pressure on European households and businesses. The figures have strengthened expectations that the European Central Bank will raise interest rates again in December, potentially increasing borrowing costs for mortgages, businesses and governments. The ECB faces the difficult task of controlling inflation without damaging economic growth across the region.