Euro-zone inflation reaches 4%, strengthening the case for an ECB rate rise
Euro-zone inflation rose to 4% in October from 3.8% in September, its highest level since September 2023, Eurostat’s flash estimate showed. RTE reports that energy costs drove the increase; core inflation, excluding food and energy, held at 2.5%. Markets put the chance of an ECB rate rise in December above 72% after the figures, CNBC reported.
Bottom line — The ECB’s deposit rate is 2.5%, and markets are betting on another increase in December.
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CNBC reports that energy inflation rose to 20.8% from 18.9% in September.
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RTE says services inflation edged up to 3.3% from 3.2%, while industrial goods inflation reached 1.2%.
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Eurostat data put October inflation at 6.1% in Lithuania and 2.3% in Malta, CNBC reports.
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RTE reports that the ECB expects inflation to stay above 4% for much of the first half of 2027 before falling towards the low twos.
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RTE says German and Italian central bank chiefs have signalled a December rate move is likely.