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Context
What happened: Euro area inflation reached 3.8% in September 2026, up from 3.2% in August, per ECB estimates, with energy prices the main driver as protests over housing, food, and energy costs spread across Europe.
Key numbers: Euro area inflation 3.8% in September 2026, up from 3.2% in August.
Why it matters: Energy-intensive sectors such as manufacturing, chemicals, and agriculture face rising production costs, and companies are passing increases to consumers. Italy and Greece asked for more fiscal flexibility, but Brussels denied it.