Inflation in the Eurozone rose to 4%

Annual inflation in the eurozone reached 4% in October, up from 3.8% in September. This is the highest reading in the last three years. The rise in prices was driven mainly by higher energy and food costs.

Energy prices rose 20% over the year, while unprocessed food rose 4.6%. Inflation excluding energy and food stood at 2.5%, while prices in the services sector rose 3.3%.

The European Central Bank kept its key rate unchanged at 2.5% last week, though following October's rise in inflation, markets now expect the bank to raise rates in December.

According to the bank's projections, inflation will remain above 4% for much of the first half of 2027 and will only begin to decline after that.

Source: Reuters