Energy costs pushed September inflation sharply higher across Europe, to 4.9% in Spain, 4.2% in Italy, 3.4% in France and 3.3% in Germany, while Australia’s central bank raised interest rates for the fourth time this year to a 15-year high of 4.60%. In the United States, the Federal Reserve’s preferred inflation gauge cooled more than expected to 3.4%, but consumer confidence fell to its lowest level since 2014.
Spain
Inflation jumps to 4.9% on fuel costs. The statistics office INE’s flash estimate put annual inflation at 4.9% in September, up from 4.3% in August, with the EU-harmonised rate at 5.0%. Fuel prices, which had been falling a year earlier, were the main driver, and core inflation rose to 3.1%, a sign that price pressure is spreading beyond energy. (INE)
Housing decrees face a tight vote in Congress on Friday. The government approved two decree-laws on September 29 that restore a 2% annual cap on rent rises for existing contracts, extend protection from eviction for vulnerable households to 2030 and allow a two-year extension for leases expiring before the end of 2028. Congress must validate them on October 2, and with Junts voicing concerns about the impact on small landlords, the outcome is uncertain. (idealista)
Catalonia
Catalan economy grew 2.5% in 2025, just behind Spain. New INE regional accounts show Catalonia’s GDP grew 2.5% last year, one tenth of a point below the Spanish average, after 3.7% in 2024. GDP per person reached €39,199, about €5,000 above the national average and fourth among Spanish regions, while Catalonia’s share of Spain’s output held at 18.9% as Madrid’s rose to 20%. (Ara)
282 state-owned affordable rental flats coming to Catalonia. The Housing Ministry said 282 flats from Sareb will join the Casa 47 public rental platform in Catalonia before the end of the year, 98 in October and 184 in December. Rents on these homes cannot exceed 30% of average local income, adding a small amount of below-market supply for tenants facing high rents. (El Nacional)
France
Inflation climbs to 3.4%, well above forecasts. INSEE’s preliminary data showed EU-harmonised inflation rising to 3.4% in September from 2.6% in August, against expectations of about 3.1%, while the national consumer price index rose 3.0%. Higher prices for oil products and gas drove the jump, squeezing household budgets and adding pressure on the European Central Bank. (Reuters)
United Kingdom
Second-quarter growth revised up to 0.5%. The Office for National Statistics revised UK GDP growth for April to June to 0.5% from an initial 0.4%, helped by stronger services output. The upgrade gives a slightly better starting point for the public finances ahead of the budget and helped the pound edge higher on Wednesday. (Euronews)
Germany
Inflation rises to 3.3%, highest in almost three years. Flash figures from the Federal Statistical Office showed annual inflation at 3.3% in September, up from 2.9% in August and above the 3.1% economists expected. Energy prices were the main driver, which means higher fuel and energy bills for households. (Bloomberg)
Italy
Inflation surges to 4.2%, a three-year high. Istat’s flash estimate put national inflation at 4.2% in September, up from 3.3% in August and above the 3.8% forecast; the EU-harmonised rate reached 4.1%. Energy costs linked to the Middle East conflict drove the rise, while core inflation, which excludes energy and fresh food, stayed much lower at 1.6%. (Reuters)
Portugal
Fuel prices push inflation to 3.6%. INE’s flash estimate showed consumer prices up 3.6% year on year in September, from 3.3% in August, the highest rate in about three years. The energy index jumped to 15.4% from 12.2%, while core inflation edged up to 2.7%, so most of the extra cost is being felt at the pump and in energy bills. (Jornal de Negócios)
United States
Fed’s preferred inflation gauge cools more than expected. The PCE price index rose 3.4% from a year earlier in August, below the 3.7% forecast, while core PCE slowed to 3.0% against 3.3% expected. Markets reduced bets on another Federal Reserve rate hike in October, although inflation remains well above the 2% target and the personal saving rate fell to 4.1%. (Fox Business)
Consumer confidence falls to lowest since 2014. The Conference Board’s index dropped to 81.9 in September from 88.6, as mentions of high prices, especially fuel, reached new highs and views on current business conditions turned negative for the first time since September 2024. Weaker confidence can foreshadow slower household spending, the main engine of the US economy. (The Conference Board)
Canada
Economy stalls in July. Statistics Canada said real GDP was essentially flat in July, as gains in construction (+1.3%) and utilities (+1.7%, boosted by a heat wave) were offset by declines in manufacturing, mining, oil and gas, and retail and wholesale trade. Its early estimate points to 0.2% growth in August, ahead of the Bank of Canada’s next rate decision on October 28. (BNN Bloomberg)
Mexico
Peso heads for its worst month in at least a year. The peso traded around 18.07 per dollar on Wednesday after starting September near 17, as investors unwound carry trades and higher US Treasury yields strengthened the dollar. Several banks have cut their peso forecasts; a weaker currency makes imports more expensive but raises the value of remittances received in pesos. (El Financiero)
Brazil
Brazil adds 165,827 formal jobs in August. Official Caged data showed net creation of 165,827 formal jobs with signed work contracts in August, led by the services sector. Continued hiring supports household incomes and spending as Brazil heads into Sunday’s presidential election. (Jornal do Comércio)
Argentina
Country risk ends September above 600 points. Argentina’s country-risk premium closed the month around 609 basis points, up 97 points in September, its steepest monthly rise of the year, while the S&P Merval lost about 9.4% in dollar terms. Analysts cited higher US yields, oil near $100, slower central bank reserve purchases and electoral uncertainty; a higher premium makes borrowing more expensive for the government and companies. (La Nación)
Morocco
Growth slows to 4% in the second quarter. The planning agency HCP said the economy grew 4% year on year in April to June, down from 5.8% a year earlier, as a 21.2% jump in farm output offset a sharp slowdown in non-farm activity to 1.5%, with mining down 28.6%. Inflation stayed very low at 0.4%, but the economy’s external financing need widened to 5% of GDP from 2.4%, a sign of a growing gap between investment and savings. (TelQuel)
Egypt
No major verified economic story in the last 24 hours.
Nigeria
No major verified economic story in the last 24 hours.
South Africa
Trade surplus and credit growth beat forecasts; rand firms. South Africa posted a trade surplus of 20.47 billion rand in August, wider than economists expected, and private-sector credit growth rose to 7.47%, above the 6.90% forecast. The rand strengthened about 0.5% to around 16.33 per dollar and government bond yields fell, which can ease borrowing costs. (Reuters / CNBC Africa)
China
Factory activity returns to growth. The official manufacturing PMI rose to 50.1 in September from 49.8, back above the 50-point line that separates expansion from contraction, and the non-manufacturing index rose to 50.2. The rebound points to a modest pickup in the world’s second-largest economy, though consumer demand and the property sector remain weak spots. (Xinhua)
Japan
Industrial output falls for a second month. Factory output fell 1.7% in August from July, against forecasts of a similar-sized rise, as disruption from an earthquake and the Middle East war weighed on production; retail sales also slipped 1.2% on the month. Manufacturers expect output to rebound by about 3% in both September and October. (The Japan Times)
India
Fiscal deficit reaches 41.9% of full-year target. Government data showed a fiscal deficit of Rs 7.10 lakh crore for April to August, 41.9% of the Rs 16.96 lakh crore budgeted for the year, with net tax revenue at 29.2% of its annual goal. The government is targeting a deficit of 4.3% of GDP and plans to borrow Rs 7.86 lakh crore in the second half of the fiscal year. (UNI)
South Korea
Output, spending and investment all fall in August. Industrial output dropped 1.3% from July, with car production down 24.8%, the sharpest fall since May 2020, as carmakers concentrated summer shutdowns in August. Retail sales fell 1.8% and facility investment 9.5%; officials described the drop as largely temporary. (The Korea Herald)
Middle East
Iran’s rial hits a record low as Hormuz talks continue. Iran’s currency fell to about 2.5 million rials per dollar, from 2.2 million less than a month earlier, as Tehran said it had received Washington’s response to its proposal on reopening the Strait of Hormuz. The US Treasury also announced new sanctions on individuals and firms accused of supplying Iran’s military, adding pressure on an economy already hit by seven months of war. (AP / Fortune)
Oil stays above $100 despite recovering Gulf exports. Brent crude settled around $105 a barrel on Tuesday, heading for a monthly gain of about 16%, even as crude exports from the region recovered to 12.8 million barrels a day in September, the highest since February. Prices at this level keep fuel and transport costs high for households and businesses worldwide. (Reuters)
Australia
RBA raises rates to a 15-year high of 4.60%. The Reserve Bank of Australia lifted its cash rate by 0.25 points to 4.60%, its fourth increase of 2026, saying higher fuel prices were flowing through to other goods and inflation was still too high. For a A$700,000 variable mortgage, repayments are estimated to rise by about A$107 a month once banks pass on the move. (SBS News)
Sources & method
Compiled by The Daily Economy editorial team with AI assistance from the sources linked in each item, cross-checked in at least two outlets, and updated twice a day. Read our editorial policy.