The eurozone CPI rose 10.7% year-on-year in October.

The eurozone CPI rose 10.7% year-on-year in October.

eurozone CPI

The eurozone’s October consumer price index (CPI) forecast rose 10.7% year-on-year, breaking a record high following last month.

According to Bloomberg, this month’s eurozone CPI, which was announced on the 31st (local time), rose 1.5% from the previous month and 10.7% from the previous year, respectively, exceeding market expectations (1.2% from the previous month and 10.3% from the previous year).

On the 30th of last month, the eurozone’s CPI growth rate in September was lowered to 9.9% after recording an annual rate of 10% based on breaking news. In this month’s case, as the breaking news has already been announced at 10.7%, the growth rate is expected to surpass the double-digit level for the first time. The key cause of worsening inflation is soaring energy and food prices in the wake of the Ukrainian war.

The tally came as the European Central Bank (ECB) recently raised its key interest rate by 75bp (1bp = 0.01% point) from 1.25% to 2.00%, taking a “Giant Step” for two consecutive months, adding to concerns that steep inflation in Europe is showing no signs of being caught. The eurozone’s monthly CPI (annual rate) has not stopped rising since it hit 1.9% in June last year.

In addition, the gross domestic product (GDP) of 19 eurozone countries grew 2.1% in the third quarter from the previous year. It grew 0.2% from the previous quarter, the lowest level this year. Earlier, the economic growth rates in the first and second quarters compared to the previous quarter recorded 0.5% and 0.8%, respectively. Reflecting the soaring prices, growth in the third quarter is also believed to have slowed significantly.

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