Producer inflation in the Eurozone rose to 11.1 percent

Euro-area producer prices rose 2.5% month-on-month and 11.1% year-on-year in September, driven mainly by energy costs, according to Eurostat data. Bulgaria recorded the highest increases among EU member states on both a monthly and annual basis. The acceleration in producer inflation matters because it signals persistent pipeline price pressures that can feed through to consumer prices and complicate the European Central Bank's rate path. Investors will watch upcoming euro-area inflation and ECB commentary for signs of whether these cost pressures are broadening beyond energy.