The European Central Bank’s (ECB) governing council meets today in Frankfurt amid speculation it will announce another 0.75% increase in interest rates.
The ECB has already increased rates twice this year, a half a percentage point in July and three quarters of a percentage point in September.
Market analysts widely expect rates to be increased by another three quarters of a percentage point today, bringing the main lending rate to 2%.
The latest data shows inflation across the euro area moving beyond energy to other parts of the economy.
Eurozone inflation is currently running at 9.9%, way ahead of the ECB target rate of 2%.
Inflation in Ireland in September was 8.2%.
There are approximately 400,000 households in Ireland with tracker and variable rate mortgages who will be most exposed to any rate rise.
The rate increases are also coming as many indicators point to Europe’s economy slowing down.
Tánaiste Leo Varadkar said that the rise in ECB rates would not be welcome news for mortgage holders, particularly those with tracker mortgages.
However, he said that it was important to remember that it was being done to bring down inflation and would help people with savings.