Eurozone inflation rose to its highest level in three years in September, driven by surging energy prices.

Preliminary data released by Eurostat on October 2 showed that the Eurozone annual inflation rate stood at 3.8% in September, up 0.6 percentage points from 3.2% in August, marking the highest level since September 2023, according to Xinhua News Agency in Brussels.

Energy prices in the Eurozone surged 18.8% year-on-year in September, exceeding the 14.3% rise in August and serving as the primary factor pushing up overall inflation. Service prices rose 3.2% year-on-year, higher than 3.0% in August. Food, alcohol and tobacco prices increased 1.4% year-on-year, up from 1.1% in August. Non-energy industrial goods prices rose 1.1% year-on-year, down from 1.2% in August.

Excluding energy, food, alcohol and tobacco prices, the Eurozone core inflation rate stood at 2.5% in September, slightly above 2.4% in August.

By country, inflation rose broadly across major Eurozone economies in September. Germany's inflation rate climbed from 2.9% in August to 3.3%, France from 2.6% to 3.4%, Italy from 3.2% to 4.1%, and Spain from 4.6% to 5.0%.

Analysts believe that the limited rise in core inflation indicates that energy price increases have not yet significantly spilled over into other areas, and the European Central Bank may still adopt a relatively cautious policy in the short term. However, if energy prices remain elevated and further pass through to services, goods and wages, the pressure on the European Central Bank to raise interest rates will increase further.