Business
ECB Expected to Hike Once More in December as Energy-Fueled Inflation Accelerates
October 23, 2026 at 12:57 PM
Eurozone inflation accelerated to 3.8 percent in September on energy costs, with most economists expecting one more ECB rate hike in December before a long pause.
- Eurozone annual inflation rose to 3.8 percent in September from 3.2 percent in August, driven by fuel and natural gas prices.
- The eurozone composite PMI fell to 51.9 in October from 53.1 in September, its lowest level in four months.
- Most economists surveyed by Bloomberg expect the ECB to raise its deposit rate by 25 basis points to 2.75 percent in December, then hold until May 2028.
- Rabobank economist Bas van Geffen said there are no signs yet of energy inflation passing into wages, allowing the ECB to wait until December.