ECB policymakers are tipping that there will be another big interest rate hike as inflation in the eurozone's biggest economy hits double digits, beating past expectations and marking another record reading for the bloc as a whole.
The European Central Bank has raised rates by a combined 125 basis points over its last two meetings and is promising further increases as skyrocketing food and energy prices filter through to the rest of the economy and increase underlying price pressures.
Underpinning the 75 basis point increase was Germany's jump to 10.9% this month, well above expectations for a 10% reading. That shows the inflation figure for the European zone is likely to exceed 9.6%.
According to ECB policy maker Gediminas Simkus he expects a 75 basis point increase and a 50 point increase is the minimum. Other policymakers including Slovakia's Peter Kazimir, Austria's Robert Holzmann and Finland's Olli Rehn expect a 75 basis point hike though the next ECB meeting on October 27.
"There is no relaxation in sight, and next year the inflation rate is only likely to decrease because energy prices are unlikely to rise again as strongly as this year, partly due to government intervention," said Commerzbank economist Ralph Solveen.
The Euro currency strengthened 0.33% against the US dollar at a trading level of 0.9768.
