The surge stemmed from rising expenses for energy, food, and transportation, as reported by national statistics.
The eurozone’s economic performance in the third quarter demonstrated unexpected strength, with growth of 0.4%—down from 0.6% in the prior quarter but exceeding the 0.2% projection from economists. Ireland’s 5.5% expansion skewed the data, as economists said the euro area grew by 0.2% excluding Ireland.
Despite the headline numbers, experts warned that deeper challenges persist. Bert Colijn, chief economist at ING, pointed out that while the region had absorbed shocks from the Middle East conflict and energy disruptions, winter could bring renewed strain if gas prices remain raised. Paolo Grignani of Oxford Economics described the economic outlook as unstable, with inflation accelerating faster than anticipated while gross domestic product gains stayed weak.
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Eurozone inflation hit a three-year high of 3.8% in September, as the US-Israel war on Iran fuelled a surge in energy prices. France, the eurozone’s second-largest economy, contracted by 0.1% in the third quarter, deepening concerns about its public finances and growing political tensions ahead of presidential elections next spring. The figure means that France’s economy has not grown at all in 2026. Germany’s economy expanded by 0.2%, while Spain sustained 0.6% growth, illustrating divergent trajectories across member states.
France’s economic difficulties intensified as bond yields hit levels not seen since 2002, reflecting investor concerns over fiscal disputes and debt sustainability. Italy’s economy recorded zero growth in the quarter, contrasting with Spain’s resilience. The contrasting performances showed how some nations were adjusting to inflationary pressures while others faced deeper setbacks from political instability and structural weaknesses.
Growth is becoming increasingly uneven across countries, with Germany and Spain gaining traction while France and Italy slow, according to Oxford Economics’ Grignani.
