Eurozone Inflation Hits 4%, a Three-Year High, as Energy Prices Climb 20.8%; Italy Jumps to 5.6%
Germany fell to 2.8% thanks to a temporary fuel-tax cut. Economists expect the ECB to raise rates in December.
By Watchman Report staff ·
Annual inflation in the euro area rose to 4% in October from 3.8% in September, according to Eurostat's flash estimate, Euronews reported. It is the highest reading since September 2023 and twice the European Central Bank's 2% target. Core inflation, excluding energy, food, alcohol and tobacco, held at 2.5%.
Energy prices were 20.8% higher than a year earlier, adding roughly 1.9 percentage points to the headline rate, according to Euronews' calculation. Italy saw the biggest jump, to 5.6% from 4.2%. Lithuania had the highest rate at 6.1%, followed by Bulgaria at 6%. Germany's rate fell to 2.8% from 3.3% after a fuel-tax cut took effect Oct. 1.
The ECB held its deposit rate at 2.5% on Oct. 29. Economists quoted by Euronews said the figures strengthen the case for a rate hike at the Dec. 16-17 meeting.
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