Eurozone Verbraucherpreise

Annual inflation in the Euro Area accelerated to 2% in October 2024, up from 1.7% in September which was the lowest level since April 2021, and in line with the preliminary estimates. This year-end increase was largely expected due to base effects, as last year’s sharp declines in energy prices are no longer factored into annual rates. Inflation has now reached the European Central Bank’s target. In October, energy cost fell at a slower pace (-4.6% vs -6.1%) and prices rose faster for food, alcohol and tobacco (2.9% vs 2.4%) and non-energy industrial goods (0.5% vs 0.4%). Services inflation also accelerated to 4%, compared to initial estimates it would stabilize at 3.9%. Meanwhile, annual core inflation rate which excludes prices for energy, food, alcohol and tobacco was unchanged at 2.7%, the lowest since February 2022. Compared to the previous month, the CPI rose 0.3%, following a 0.1% fall in September.