Inflation in the eurozone stood at 4 per cent in October, the highest since 2023, according to Eurostat, the EU’s statistical office.
Energy is a major contributor to this trend, as sky-high energy bills continued to push up the cost of living across the EU. Energy prices were 20.8 per cent higher than the previous year, and rose by 1.4 per cent in October alone, according to Euronews.
Eurostat’s preliminary estimate showed that annual inflation rose from 3.8 per cent in September to 4 per cent in October. Prices rose by 0.4% in October alone compared with the previous month. Prices are now rising at twice the rate of the European Central Bank’s 2% target.
This is the highest figure since September 2023, when inflation stood at 4.3 per cent.
Core inflation, which excludes energy, food, alcohol and tobacco, remained stable at 2.5 per cent. Both inflation and core inflation were in line with forecasts.
Energy accounts for around 9 per cent of the basket of goods in the euro area. With growth of 20.8 per cent, it accounted for almost half of total inflation.
Service price growth, which includes items such as rent, restaurants, holidays and insurance, rose by 3.3 per cent. As services account for nearly half of the consumer price index, even small changes have an impact on overall inflation.
The European Central Bank decided last week to keep its key interest rate unchanged at 2.5 per cent. The Bank noted that energy prices had continued to rise and that there is a risk that economic growth may slow, but also highlighted that underlying inflation had remained stable. (NTB)
Lithuania (6.1 per cent), Bulgaria (6 per cent), Italy and Greece (5.6 per cent) are the countries with the highest inflation. Belgium follows with 5.2 per cent.
