Eurozone Annual Inflation Confirmed at 2.2% in October
Rise in energy prices bring the fastest pace of the Eurozone inflation growth in nearly six years in October. The Eurostat reported, that consumer prices in the Eurozone rose 2.2% year-on-year in October after a 2.1% increase in September and a 2.0% gain in August. The indicator showed the biggest increase since December 2012. On the month, headline inflation increased by 0.2% last month, in line with market expectations, but slowing from 0.5% growth in September.
Meanwhile, core inflation, which excludes energy, food, tobacco and alcohol, was confirmed at 1.1% on the year in October.
The report also showed, that energy prices rose 10.7% year-on-year in October, while prices for other industrial goods went up by only 0.4%. Inflation in the services sector, the largest in the Eurozone economy, was 1.5% on the year, but prices dropped by 0.3% on the month.
The inflation data support the European Central Bank's decision to end its price-boosting bond-buying program at the end of the year, as inflation is now overshooting the ECB target of price growth below, but close to 2% over the medium term.