Doubt over ECB interest rate cut as consumer price inflation hits 3%

EUROZONE consumer price inflation jumped unexpectedly to 3% in September, its highest level in almost three years, heaping doubt on bets that the European Central Bank will cut interest rates next week.

In an estimate from the EU’s statistics agency Eurostat, the inflation figure for the 17 countries that share the euro increased from the 2.5% in August to its highest since October 2008.

Economists polled by Reuters had forecast an unchanged rate and remain confident it will soon fall back as the economy slows.