Eurozone inflation doubled in September to the highest level since late 2014, but remained well below the European Central Bank's target, the flash estimate from Eurostat showed Friday.
Meanwhile, Eurozone's jobless rate held steady at a five-year low for a fourth straight month in August.
Inflation rose to 0.4 percent from 0.2 percent in August. A similar high rate was last seen October 2014. This was the fourth consecutive rise in prices and exceeded the expected growth of 0.3 percent.
Nonetheless, headline inflation has been below the ECB's target of 'below, but close to 2 percent' since early 2013.
Final data is due on October 17.
Data support the view that the ECB has more work to do to return euro-zone inflation to target on a sustained basis, Jack Allen at Capital Economics said. The economist expects the bank to announce a six-month extension of its asset purchases in December.
Core inflation that excludes energy, food, alcohol and tobacco, held steady at 0.8 percent in September.
Food, alcohol and tobacco prices climbed 0.7 percent, while energy prices decreased at a slower pace of 3 percent. At the same time, non-energy industrial goods prices and services prices gained 0.3 percent and 1.2 percent, respectively.
Among major euro area nations, German inflation rose to a 16-month high of 0.7 percent in September. French inflation doubled to 0.4 percent from 0.2 percent a month ago.
Spain's consumer prices turned positive in September for the first time in 14 months. Consumer prices advanced 0.3 percent, reversing a 0.1 percent drop in August.
Similarly, Italy's consumer prices increased in September after falling for seven consecutive months. Prices edged up 0.1 percent.
The Eurozone unemployment rate held steady at 10.1 percent in August. Economists had predicted a rate of 10 percent. The rate has been at its lowest since July 2011 since April. A year ago, the jobless rate was 10.7 percent.
The youth unemployment rate came in at 20.7 percent in August versus 20.8 percent in July.
The number of unemployed increased by 8,000 from July, while it decreased by 875,000 from prior year.
The EU28 unemployment rate was also unchanged in August, at 8.6 percent, the lowest figure since March 2009.
The lowest unemployment rates were recorded in the Czech Republic and Germany, while the highest unemployment rates were observed in Greece and Spain.
Regional data showed that Italy's unemployment rate remained at 11.4 percent in August. Germany's rate held steady in September, at 6.1 percent, the lowest since reunification, but the number of people out of work rose unexpectedly by 1,000.
by RTT Staff Writer
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