Euro area inflation rises to 2% in October, meeting ECB target

Annual inflation in the Euro Area accelerated to 2% in October 2024, up from 1.7% in September, the lowest level since April 2021, and slightly above forecasts of 1.9%, according to preliminary estimates.

Euro area inflation rises to 2% in October, meeting ECB target

This year-end increase was anticipated mainly due to base effects, as last year’s significant declines in energy prices are no longer included in annual calculations. Inflation has now met the European Central Bank’s target. In October, energy costs decreased at a slower rate (-4.6% compared to -6.1%), while prices for food, alcohol, and tobacco rose more quickly (2.9% versus 2.4%), along with non-energy industrial goods (0.5% versus 0.4%). Conversely, services inflation remained steady at 3.9%.

Core inflation steady at 2.7%, CPI up 0.3% after September decline

Additionally, the annual core inflation rate, which excludes energy, food, alcohol, and tobacco, held steady at 2.7%, the lowest since February 2022 but above expectations of 2.6%. Month-over-month, the CPI increased by 0.3%, following a 0.1% decline in September.