Euro area annual inflation is expected to be 3.4% in September, according to a flash estimate released on Friday by Eurostat, the statistical office of the EU.
This marks the highest level in 13 years when inflation had stood at 3.6% in September 2008. The market expectation for the reading was 3.3%, while it stood at 3% in August.
Energy is expected to have the highest annual rise in September by soaring 17.4%, compared to 15.4% in August. It was followed by non-energy industrial goods, rising 2.1%, compared to 2.6% in August.
Estonia and Lithuania showed the highest jump with 6.4% and 6.3%, respectively, while Slovakia had a 5.1% increase. They were followed by the EU's largest economy, Germany, which saw a gain of 4.1% last month – the highest level since 1997.
The historic high levels come amid rising oil and natural gas prices as the economies open up from the coronavirus pandemic and normalization leads to higher consumption.
The price of Brent crude oil averaged $41.96 in 202 during the pandemic but recently jumped to its highest level in three years. The international benchmark was trading around $78 per barrel on Friday.