Inflation in the Eurozone climbed to 4% in October, representing an increase of two-tenths compared to September's figures. According to data released this Wednesday by Eurostat, this marks the highest inflation rate recorded in three years. The primary driver behind this uptick was the sharp rise in energy costs, which surged 20.8% on an annual basis, nearly two points higher than the 18.9% increase seen the previous month.
Other sectors also contributed to the overall rise. Inflation for services advanced by one-tenth to reach 3.3%, while food, alcohol, and tobacco prices accelerated by three-tenths to 1.6%. Additionally, non-energy industrial goods became more expensive by one-tenth, settling at 1.2%. Despite these increases across various categories, the underlying inflation rate, which excludes volatile components such as energy and unprocessed food, remained steady at 2.2%, matching September's level. The indicator excluding only energy rose slightly to 2.3%, up one-tenth from the prior month.
These figures suggest that while the significant increase in energy prices remains the main engine of inflation in the eurozone, there is also a slight upward pressure on other components of the consumer basket, particularly within the services sector. Among the major economies using the single currency, Belgium recorded the highest inflation rate at 5.2%. Italy followed with 5.6%, while Spain and Luxembourg both registered rates of 4.9%. Ireland reached 4%, France stood at 3.8%, and Germany was at 2.8%.
At the lower end of the spectrum, Malta reported an inflation rate of 2.3%, Slovakia recorded 2.9%, and Germany remained at 2.8%. Collectively, these data points highlight that inflationary pressures remain uneven across different countries within the eurozone. However, the rising cost of energy continues to be a common factor explaining a significant portion of the acceleration observed in October.
Sources: El País Economía.