Business Desk :
Eurozone inflation eased to 2.1per cent in October, nearing the ECB’s target. Lagarde praised progress but warned of global and wage-related risks.
Price growth in the eurozone continued to ease in October, reinforcing the European Central Bank’s view that inflation is steadily moving back towards target, though stubborn services costs and global uncertainties continue to keep policymakers on alert.
According to a flash estimate from Euro stat, annual inflation in the euro area cooled to 2.1per cent in October, down from 2.2per cent in September, and now just a hair above the ECB’s 2per cent medium-term target, reports Euro News.
The figure matched expectations and adds to a string of data suggesting the post-pandemic cost-of-living crisis is being brought under control.
On a monthly basis, prices rose 0.2per cent, slightly up from September’s 0.1per cent increase.
The core inflation rate, which strips out volatile items like food and energy, held steady at 2.4per cent – a notch above forecasts for a slight drop to 2.3per cent.
That suggests that while headline inflation is easing, underlying price pressures – particularly in services – remain sticky.
Indeed, services inflation rose to 3.4per cent in October, up from 3.2per cent in the previous month, making it the strongest contributor to overall inflation.
In contrast, food, alcohol and tobacco prices softened to 2.5per cent, and non-energy industrial goods slowed to 0.6per cent.
Energy prices remained negative, falling 1.0per cent, a deeper contraction than in September.
Among euro zone countries for which harmonized inflation data was available, Estonia reported the highest annual inflation rate at 4.5per cent, followed by Latvia (4.2per cent), Austria, and Croatia (both 4.0per cent).
At the other end of the scale, Cyprus registered a low 0.3per cent, while France posted a 0.9per cent increase.
On a monthly basis, the Netherlands saw the sharpest rise, with prices up 0.6per cent, followed by Spain and Austria, both at 0.5per cent.
Meanwhile, five countries recorded falling prices on a month-over-month basis. Malta saw the steepest monthly decline at 1per cent, followed by Portugal down 0.3per cent, Italy by 0.2per cent, and both Greece and Luxembourg with drops of 0.1per cent each.
