New record for inflation in the euro zone at 10.7% over one year in October | Photo credits: Levine-Roberts/Sipa USA/SIPA
PARIS, Oct 31 (Reuters) – Eurozone inflation hit a new record high in October, pointing to further rate hikes by the European Central Bank as price pressures appear to be broadening.
The consumer price index calculated to European standards (HICP) shows an increase of 10.7% on an annual basis, shows the first estimate published Monday by Eurostat, a figure higher than expected. Economists and analysts polled by Reuters on average forecast a rise of 10.2% after that of 9.9% in September.
Energy prices jumped 41.9%, after +40.7% in September. Those of food, alcohol and tobacco increased by 13.1% in one year, those of industrial goods excluding energy by 6.0% and those of services by 4.4%, specifies Eurostat in a press release .
Core inflation, which excludes energy and unprocessed food, has also picked up, indicating that price pressures are spilling over to other categories and may contribute to the “anchoring of high inflation.
This index stands at 6.4% over one year against 6.0% a month earlier.
An even narrower measure, which also excludes alcohol and tobacco, is up 5.0% after +4.8%.
Tableau (Written by Laetitia Volga, Editing by Kate Entringer)