Eurozone annual inflation eases to 2.1% in October

ISTANBUL

Annual consumer inflation in the euro zone eased to 2.1% in October, down from 2.2% in September, according to a preliminary estimate released Friday by Eurostat.

The figure matched market expectations but remained above the European Central Bank’s (ECB) medium-term target of 2%.

Services were the biggest driver of inflation in October, rising 3.4% year-on-year, followed by food, alcohol, and tobacco (up 2.5%) and non-energy industrial goods (0.6%).

Energy prices, on the other hand, were the largest downward contributor to inflation, decreasing 1% annually in October. In September, the decline in energy prices was 0.4%.

The core inflation rate, which excludes volatile food and energy prices, rose 2.4% annually, stable from the previous month, but above market forecasts.

Estonia had the highest annual inflation rate at 4.5% in October, followed by Latvia at 4.2% and Croatia and Slovakia, both at 4%.

The lowest inflation rate was seen in the Greek Cypriot Administration, with 0.3%, followed by France at 0.9% and Italy with 1.3%.

On a monthly basis, the consumer price index rose 0.2% in October, ticking up from 0.1% in September.

The eurozone, also known as the euro area or EA20, represents the 20 EU member states that use the euro as their official currency.