1313 GMT - August inflation for the eurozone data showed no clear second-round effects from higher energy prices, but broader pressures are mounting, Jack Allen-Reynolds at Capital Economics says in a note. "We think that increases in energy, food and core inflation will push it up to 4% by December," Allen-Reynolds says, adding that the indirect effects of higher energy costs should push up services inflation in the coming months. Core inflation is expected to rise to just under 3% in early 2027, from 2.4%, while food inflation could jump to 4% by the third quarter of 2027, from 1.2%. "But if energy prices fall back next year, as we assume, headline inflation could be below 2% by the end of 2027."
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