Euro zone inflation hits 4% for first time in three years as interest rate hike looms
Energy costs drove the increase, while core inflation held at 2.5% and markets raised bets on a December rate hike.
- Eurozone inflation climbed to 4% in October, reaching its highest level in three years as rising food and energy costs intensified pressure on household budgets.
- The latest inflation figures have strengthened expectations that the European Central Bank will raise interest rates again in December to control rising prices.
- Energy inflation surged to 20%, largely driven by higher oil and gas prices linked to the ongoing conflict involving the United States and Iran.
- ECB policymakers, including Bundesbank President Joachim Nagel, have indicated that another rate increase is likely unless the inflation outlook improves significantly.
- Financial markets anticipate further monetary tightening, while economists warn that persistent energy and food price increases could keep inflation above the ECB’s 2% target for an extended period.
191 Articles
191 Articles
The annual rate of inflation in the euro area rose to 4% in October, from 3.8% in September, reaching the highest level in the last three years, according to preliminary data published on Wednesday.
The annual rate of inflation in the euro area rose to 4% in October, from 3.8% in September, reaching the highest level in the last three years, according to preliminary data published on Wednesday. The acceleration of prices, mainly caused by the increase in energy, amplifies the pressure on the European Central Bank (ECB) for a further increase in interest rates at the last monetary policy meeting this year, reports the NBC.
The European Statistical Office (EUSTAT) said today Wednesday: inflation in the euro area rose to 4% last October, recording its highest level in three years, driven by a sharp rise in energy prices as a result of the escalation in the Middle East.
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