The Eurozone annual inflation in October rose to the highest level since December 2012, due to higher energy prices and core inflation.
Eurozone inflation in October is expected to be 2.2 percent, up from 2.1 percent in September, data from Eurostat, the statistical office of the European Union(EU) showed on Wednesday.
The rate was in line with the consensus forecast and reflected a combination of higher energy and core inflation.
Energy prices in October rose 10.6 percent, higher than the 9.5 percent in September.
"Admittedly, the core rate (which excludes the volatile energy, food, alcohol and tobacco components) is still low at 1.1 percent. But it is above the average for the past year and survey measures of firms' and consumers'inflation expectations suggest that it will rise further as the European Central Bank(ECB) forecasts," said Jennifer McKeown, chief European economist with Capital Economics.
Figures released on Tuesday showed that the third quarter growth rose by just 0.2 percent, the weakest reading since the second quarter of 2014, and half of the ECB's own expectation and the previous quarter's figure.
ECB plans to end its bond purchases at the end of the year.
"we still see the ECB ending its asset purchases in December and we do not expect the recent slowdown in activity to cause it to alter its forward guidance," said McKeown.
Eurozone inflation in October is expected to be 2.2 percent, up from 2.1 percent in September, data from Eurostat, the statistical office of the European Union(EU) showed on Wednesday.
The rate was in line with the consensus forecast and reflected a combination of higher energy and core inflation.
Energy prices in October rose 10.6 percent, higher than the 9.5 percent in September.
"Admittedly, the core rate (which excludes the volatile energy, food, alcohol and tobacco components) is still low at 1.1 percent. But it is above the average for the past year and survey measures of firms' and consumers'inflation expectations suggest that it will rise further as the European Central Bank(ECB) forecasts," said Jennifer McKeown, chief European economist with Capital Economics.
Figures released on Tuesday showed that the third quarter growth rose by just 0.2 percent, the weakest reading since the second quarter of 2014, and half of the ECB's own expectation and the previous quarter's figure.
ECB plans to end its bond purchases at the end of the year.
"we still see the ECB ending its asset purchases in December and we do not expect the recent slowdown in activity to cause it to alter its forward guidance," said McKeown.
Latest comments