Eurozone: Inflation nears six-year high in October
October 31, 2018
According to preliminary data released by Eurostat on 31 October, harmonized inflation came in at 2.2% in October, up from September’s 2.1%. October’s reading marked the highest inflation rate since December 2012. As a result, inflation now sits further from the European Central Bank’s target rate of just under 2.0%.
According to Eurostat, higher price pressures were chiefly due to rising prices for energy, which surged over 10% in October compared to the same month last year. Meanwhile, price pressures for food, alcohol and tobacco moderated somewhat from the previous month. Core inflation—which strips out the volatile prices of energy and unprocessed foods—also rose, increasing from September’s 1.1% to 1.3% in October. Month-on-month price variations and a more detailed set of data will be released on 16 November.
Eurozone Inflation Forecast
FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 1.7% in 2019, which is unchanged from last month’s forecast. For 2020, panelists expect inflation to be steady at 1.7%.