The European Statistics Office released preliminary data on Monday, showing that annual headline inflation for the previous month was 10.7%.
Since the creation of the euro zone, this represents the highest monthly reading ever. For the past 12 months, the 19-member bloc has experienced higher prices, particularly for energy and food.
However, the invasion of Ukraine by Russia in late February has made the increases more pronounced.
Inflation in the euro zone surpassed the 10% mark in October, underscoring the severity of the region’s cost-of-living crisis and exerting additional pressure on the European Central Bank.
The European Statistics Office released preliminary data on Monday, showing that annual headline inflation for the previous month was 10.7%. Since the creation of the euro zone, this represents the highest monthly reading ever. For the past 12 months, the 19-member bloc has experienced higher prices, particularly for energy and food. However, the invasion of Ukraine by Russia in late February has made the increases more pronounced.
This was once again the case, with energy prices expected to have increased by the most in one year in October, rising to 41.9% from 40.7% in September. Prices for food, alcohol, and tobacco increased during the same time frame, rising 13.1% from the previous month’s 11.8%.
The data released on Monday follows last week’s flash estimates from various nations. Germany reported an increase in inflation of 11.6%, while France reported an increase of 7.1%. Italy reported annual inflation of 12.8%, exceeding analysts’ expectations. National policies and the degree of dependence on Russian hydrocarbons are represented by the various values.
However, there are some euro-zone countries where inflation increased by more than 20%. Estonia, Latvia, and Lithuania are included in this.
The European Central Bank, whose main goal is to control inflation, confirmed additional rate increases in the coming months in an effort to lower prices on Thursday. In a statement, it acknowledged that substantial progress” had been made toward normalising rates in the area, but added that it still expects to raise interest rates, to ensure the timely return of inflation to its 2% medium-term inflation target.
The euro area’s GDP (gross domestic product) increased by 0.2% in October, according to growth data released on Monday. This comes after the area’s second quarter growth rate of 0.8%. The only nations with negative GDP rates were Belgium, Latvia, and Austria.
The 19-member bloc has so far avoided a recession, but a slowdown in the economy is clearly present. Numerous economists forecast that the GDP will contract during the current quarter.
