Eurozone annual inflation climbs to 4% in October on energy surge

Energy costs jump 20.8% annually, while core inflation holds steady at 2.5%, Eurostat reports

Annual consumer inflation in the eurozone is expected to reach 4% in October, accelerating from 3.8% in September, according to a flash estimate released by Eurostat on Wednesday. The rise was driven primarily by energy costs, which registered the highest annual inflation rate among main components at 20.8%, up from 18.9% in September. Services inflation followed, edging up to 3.3% year-on-year from 3.2% in the prior month. Food, alcohol and tobacco prices increased 1.6% annually in October compared with 1.3% in September, with unprocessed food rising 4.6%. Non-energy industrial goods inflation ticked up to 1.2% year-on-year from 1.1% in September. Core inflation, which excludes volatile energy, food, alcohol and tobacco, held steady at 2.5% in October, matching the rate recorded in September. On a monthly basis, the Harmonized Index of Consumer Prices rose 0.4% across the euro area in October. Among member states, the highest annual inflation rates were observed in Lithuania at 6.1%, Bulgaria at 6%, and Greece and Italy at 5.6% each. The lowest annual rates were recorded in Malta at 2.3%, Germany at 2.8% and Slovakia at 2.9%.