The annual rate of inflation in the eurozone accelerated in October at the fastest pace since July 2008, due to rising energy prices, supply constraints and strong consumer demand.
Consumer prices rose 4.1% on year in October, according to a first estimate released Friday by Eurostat, the European Union’s statistics agency. Prices rose 3.4% on year in September.
The main driver of the on-year increase was energy prices which rose 23.5% on year, compared with the 17.6% increase registered in September.
The core consumer price index–which excludes the more volatile categories of food and energy–rose 2.1% on year in October, after rising 1.7% the previous month.
The acceleration in the eurozone’s annual rate of inflation adds further evidence to a buildup in price pressures globally as economies recover from the Covid-19 pandemic, with strong consumer demand and global supply chain disruptions.
Economists expect headline inflation to continue rising in the coming months, but to fall back below the European Central Bank’s 2% target in 2022 and 2023.
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