Inflation inarea of the euro exceeds expectations for a new one record

Eurozone inflation again exceeded expectations this month at one level recordindicating that the European Central Bank will impose further interest rate hikes as price pressures appear to increase.

Consumer price growth in the 19 countries using the euro accelerated to 10.7% in October from 9.9% in September, beating analysts’ expectations in a Reuters poll of 10.2%, with inflation in Germany, Italy and France in increase more than expected. data published Monday by the Statistical Office of the European Union (Eurostat).

Energy prices continued to spur inflation, but imported food and industrial goods pushed prices in strong rise while the service sector played a marginal role this time.

The European Central Bank raised interest rates by 200 basis points in total over the past three months and promised further tightening in December. But markets are starting to expect a slowdown in the rate of interest rate hike with a looming recession and gas prices falling from all-time highs.

However, policy makers are likely to be concerned that core inflation will continue to accelerate, signaling increasing price pressures and increasing the risk of high inflation taking hold.

Read More About: World News