Energy prices drive Europe inflation to highest since 2008

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The European Union’s statistics agency says sharply higher oil and gas prices have helped push annual inflation in the 19 countries that use the euro to its highest in more than a decade. Eurostat reported Friday that inflation came in at 3.4% for September, up from 3.0% in August and more than the 3.3% expected by market analysts. Boosted by a jolting 17.4% increase in energy prices, the overall inflation level is the euro area’s highest since 2008. Core inflation, which excludes volatile fuel and food, was more modest at 1.9%. Higher prices for natural gas and electricity have spread concern among European governments, which are taking steps to limit rises in residential utility bills.