BENGALURU, Oct 5 (Reuters) - Euro zone business activity expanded at its fastest pace in nearly 3-1/2 years in September as demand remained strong despite inflation worries stemming from the Middle East war, according to a private survey which also showed resurgent price pressures. Inflation in the bloc jumped more than expected to 3.8% last month from 3.2% in August on soaring energy costs, raising the risk the European Central Bank will lift interest rates to a higher-than-expected level. But that, alongside a recent surge in bond yields, has so far done little to harm activity. The S&P Global Eurozone Services PMI rose to a 10-month high of 53.0 in September from August's 51.6, in line with a preliminary estimate.
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