Eurozone inflation highest since 2008

Consumer prices surged by 4.1pc

Eurozone inflation graphic

Various sources report that eurozone inflation has surged to its highest level since 2008, overshadowing better-than-expected growth figures for the region. Consumer prices surged by 4.1% year on year in October, fuelled by energy costs that rose by a quarter over the same period.

Economic growth in the eurozone hit 2.2p% in the third quarter – ahead of forecasts – with France and Italy leading the rebound after the lifting of Covid restrictions. But soaring inflation and persistent supply chain shortages are threatening the region’s outlook.

The European Central Bank pushed back against market expectations of an interest rate rise on Thursday, with president Christine Lagarde insisting inflation would ease in 2022.

CNBC reports that eurozone inflation hit a new 13-year high in October, as the currency bloc battles surging energy costs. Headline inflation on Friday came in at 4.1% for this month, according to preliminary data from Europe’s statistics office Eurostat. The graphic below is from the FT.

Eurozone inflation highest since 2008 1

This was the highest level since July 2008, according to Reuters data, and was ahead of a consensus forecast of 3.7%. September’s figure had come in at 3.4%.

The rise has been driven higher by surging energy prices, deepening concern among policymakers. The energy component to the inflation data was up 23% year-on-year, by far the biggest contributor.

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