Euro Zone Inflation Hits 4% in October as Energy Prices Drive 20.8% Surge
Updated
Updated · CNBC · Nov 4
Euro Zone Inflation Hits 4% in October as Energy Prices Drive 20.8% Surge
3 articles · Updated · CNBC · Nov 4
Summary
Euro zone consumer inflation rose to 4.0% in October from 3.8% in September, reaching its highest level since September 2023 and matching economists' forecasts.
Energy costs drove the increase, with energy inflation accelerating to 20.8% from 18.9% as Europe remained exposed to external price shocks since the start of the Iran war.
All 21 euro-area economies stayed above the ECB's 2% target; Lithuania posted the highest rate at 6.1%, while Malta recorded the lowest at 2.3%.
Markets slightly raised bets on another ECB hike after the data, pricing the chance of a December increase above 72% after the central bank held rates at 2.5% last month.
Underlying inflation and wages were broadly stable, but analysts said turmoil in France's bond market could limit how aggressively the ECB tightens policy.