Eurozone: Inflation inches up in October
November 16, 2018
According to complete data released by Eurostat on 16 November, harmonized inflation came in at 2.2% in October, matching the preliminary estimate. The result was slightly above September’s 2.1% and marked one of the highest readings seen in the past two years. Inflation sits just above the European Central Bank’s target rate of near, but below, 2.0%. Higher price pressures for energy and services drove October’s inflation reading.
Annual average inflation inched up from 1.6% in September to 1.7% in October. Meanwhile, core inflation edged up to 1.2% from September’s 1.1%. On a monthly basis, harmonized consumer prices rose 0.2% in October, below September’s 0.5% increase.
Among the countries in the common-currency bloc, Estonia (4.5%) and Latvia (3.2%) experienced the highest inflation. On the flipside, Ireland (1.1%) and Portugal (0.8%) recorded the lowest inflation. Regarding the largest economies in the Eurozone, inflation edged up in Germany (2.4%) but was stable in France (2.5%) and Spain (2.3%).
Eurozone Inflation Forecast
FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 1.7% in 2019. For 2020, panelists expect inflation to also average 1.6s%.