Eurozone inflation jumps back to 2%

Inflation in the eurozone rebounded sharply as expected in October, rising from a three-year low and back in line with the European Central Bank's target.

Data from Eurostat on Tuesday showed that the annual change in consumer prices was 2.0% last month, with the rate of inflation jumping from 1.7% in September – its lowest level since April 2021.

This was in line with the consensus forecast.

Prices in the services sector added 1.77 percentage points to the overall consumer price index, while food, alcohol and tobacco lifted inflation by 0.56pp and non-energy industrial goods added 0.13pp, partly offset by a -0.45pp impact from falling energy prices.

Slovenia registered the lowest inflation rate in the eurozone with prices unchanged year-on-year, while Lithuania and Ireland both saw a 0.1% increase. In contrast, the highest annual rates were seen in Belgium and Estonia, both at 4.5%.