Eurozone Inflation Rises to Four Percent as Energy Costs Climb
(MENAFN) Annual consumer inflation across the eurozone is projected to accelerate to 4% in October, compared with 3.8% in September, according to preliminary figures released by Eurostat on Wednesday.
The increase was largely driven by rising energy prices, which recorded an annual inflation rate of 20.8%, up from 18.9% a month earlier. Energy was the fastest-growing component among the main categories monitored.
Services prices also continued to rise, with inflation in the sector reaching 3.3% year-on-year in October, slightly higher than the 3.2% recorded in September.
Food, alcohol and tobacco prices increased by 1.6% annually, compared with 1.3% in the previous month. Within this category, unprocessed food prices registered a more pronounced rise of 4.6%.
Meanwhile, non-energy industrial goods inflation edged up to 1.2% from 1.1% in September, indicating a modest acceleration in price growth for manufactured products.
Core inflation, which excludes the more volatile categories of energy, food, alcohol and tobacco, remained unchanged at 2.5% in October, matching the previous month's reading.
On a monthly basis, the Harmonized Index of Consumer Prices (HICP) increased by 0.4% across the euro area.
A breakdown by member state showed that Lithuania recorded the highest annual inflation rate at 6.1%, followed by Bulgaria at 6%. Greece and Italy both registered rates of 5.6%.
At the other end of the scale, Malta posted the lowest annual inflation rate at 2.3%. Germany followed at 2.8%, while Slovakia recorded 2.9%.
The preliminary figures indicate that energy costs remain the main driver of the eurozone's latest inflation increase, while core price growth remained stable compared with September.
The increase was largely driven by rising energy prices, which recorded an annual inflation rate of 20.8%, up from 18.9% a month earlier. Energy was the fastest-growing component among the main categories monitored.
Services prices also continued to rise, with inflation in the sector reaching 3.3% year-on-year in October, slightly higher than the 3.2% recorded in September.
Food, alcohol and tobacco prices increased by 1.6% annually, compared with 1.3% in the previous month. Within this category, unprocessed food prices registered a more pronounced rise of 4.6%.
Meanwhile, non-energy industrial goods inflation edged up to 1.2% from 1.1% in September, indicating a modest acceleration in price growth for manufactured products.
Core inflation, which excludes the more volatile categories of energy, food, alcohol and tobacco, remained unchanged at 2.5% in October, matching the previous month's reading.
On a monthly basis, the Harmonized Index of Consumer Prices (HICP) increased by 0.4% across the euro area.
A breakdown by member state showed that Lithuania recorded the highest annual inflation rate at 6.1%, followed by Bulgaria at 6%. Greece and Italy both registered rates of 5.6%.
At the other end of the scale, Malta posted the lowest annual inflation rate at 2.3%. Germany followed at 2.8%, while Slovakia recorded 2.9%.
The preliminary figures indicate that energy costs remain the main driver of the eurozone's latest inflation increase, while core price growth remained stable compared with September.
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