French and Italian inflation climbed to multiyear highs this month, reflecting enduring energy-price pressures that could push European Central Bank policymakers to raise interest rates again next month.
In France, consumer prices were 3.4% higher in September than the same month last year, up from 2.6% in August. In Italy, inflation was at 4.1% from 3.2% in August. Both readings, based on data harmonized to European Union standards, were higher than expected by economists polled by The Wall Street Journal.
Energy inflation rose after fuel prices rose this month on escalating tensions in the Middle East. Services-sector inflation also increased, as did price rises for food, both countries' statistics agencies said.
Price growth therefore reached its strongest level since January 2024 in France and September 2023 in Italy. German inflation data, due later Wednesday, is also expected to show a multiyear high.
The ECB earlier this month raised its key rate, with policymakers judging it couldn't "look through" the recent jump in oil and gas prices.
Inflation data for Spain and Belgium published Tuesday also showed price growth well above the ECB's 2% target. Investors are about evenly split on whether the central bank will hike or not on Oct. 29.