Inflation hits 10% in the euro area but pace in Ireland moderates

Inflation across the euro zone hit 10pc for the first time in September in a development likely to build pressure on the European Central Bank to hike interest rates further,

In Ireland the pace of price increases softened, the latest estimates from the the European Union’s statistics agency, Eurostate, show. 

In September Irish consumer prices rose 8.6pc, down from 9pc in August and 9.6pc in June and July. The experience of higher prices varies widely across Europe – from 24.2pc annualised inflation in Estonia to 6.2pc in France.

But the Euro area wide figures will be the main factor in determining the size of the ECB’s next interest rate raise, likely in October, as the bank led by President Christine Lagarde tries to address the price surge.

Consumer prices across the euro area surged 10pc from a year ago in September, data from Eurostat showed on Friday with energy prices by far the biggest driver, followed at a distance by food.

Even an underlying measure that excludes energy and food hit an all-time high of 4.8pc.

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