William Malcolm

Eurozone Inflation Hits 13 Year High

As in previous months, euro area price growth accelerated to 4.1 percent in October. The year-on-year inflation rate, influenced mainly by a sharp rise in energy prices, thus exceeded the value from September by seven tenths of a percentage point. This was stated today in its quick estimate by the statistical office Eurostat. Inflation is now comparable to before the financial crisis in 2008. Data for the European Union as a whole are not estimated, and will be published by the Office in mid-November.

October’s growth significantly exceeded the estimates of analysts contacted by Reuters, who expected 3.7 percent. At the same time, it exceeded twice the long-term goal of the European Central Bank (ECB), which is at two percent.

The rise in energy prices contributed the most to the development, accelerating to 23.5 percent from 17.6 percent in September. Prices of services rose by 2.1 percent, which is four tenths of a point more than in September. For food, alcohol and tobacco products, growth remained at two percent from the previous month, and for non-energy industrial goods it slowed by a tenth of a point to two percent.