Further negative repercussions could arise from a possible abrupt slowdown in the Chinese economy, mainly in connection with the fragility of the construction sector, and from inflation remaining persistently high for longer than currently expected. Inflation in the euro area came close to 10 per cent in September, mainly driven by the exceptional rise in energy prices (over 40 per cent year-on-year).
Inflation reached 4.8 per cent net of the most volatile components – energy and food – which are the most affected by the conflict in Ukraine. Almost two thirds of the overall increase in consumer prices over the past twelve months appear to have been caused by the increases in energy prices, both directly and through the impact on production costs.