BRUSSELS, (Reuters) – Eurozone producer prices rose more in September than anticipated, driven by rising energy costs. They recorded their largest increase in record, a sign that there are strong inflationary pressures within the bloc. Public data was released on Thursday.

According to Eurostat, the European Union’s statistical office Eurostat calculated that September saw prices rise 2.7% in each of the 19 euro-member countries. This equates to a 16.0% increase in year-on–year inflation. It is the largest ever observed for the bloc.

Also, the jump was higher than expected. Economists polled at Reuters predicted a 2.2% monthly increase and a 15.2% rise in year-over-year growth.

Producers prices rose rapidly amid an economic recovery fast after the worst phase of COVID-19, tightening global supply chains and a sharp rise in gasoline prices.

The increase in energy prices was 7.7% per month, which is a 40% year-on–year jump. However, the total industry price increase excluding energy was 0.6%, slower than previous months.

According to Eurostat which estimated an increase of 4.1% in October, the rise in industrial prices is mirrored by the annual surge in consumer prices.

Higher producer prices usually lead to higher consumer prices. The European Central Bank expects that inflation will remain at around 2.2%. Inflation will be slowed in 2022, according to euro zone finance ministers as well as the bank.