Energy prices drive up inflation in the eurozone

Inflation in the euro area economy rose in September, but remains weak once the impact of soaring oil prices has been eliminated.

According to a quick estimate from Eurostat, the statistics bureau of the European Commission, euro area inflation should have reached 2.1% in September, against 2% in August.

However, core inflation, which suppresses changes in oil and food prices and is considered a better indicator of long-term inflationary pressures, rose from 1% to 0.9% in September.

Energy prices rose 9.5% over the past year, driving business costs up for manufacturers in the region and reducing consumers' disposable incomes.

Although overall inflation is above the European Central Bank's target of just under 2%, the persistent lack of underlying inflationary pressures remains a matter of concern for policymakers.

The ECB expects that, in time, higher wage increases and lower unemployment will raise demand and prices.