Annual inflation in the Euro Area rose to 2% in October 2024, up from 1.7% in September, the lowest rate since April 2021, and in line with preliminary estimates.
Eurozone inflation confirmed at 2% in October
This increase was largely anticipated due to base effects, as the sharp declines in energy prices from last year are no longer reflected in the annual comparison. Inflation has now reached the European Central Bank’s target. In October, energy prices fell at a slower pace (-4.6% vs. -6.1%), while prices for food, alcohol, and tobacco rose more quickly (2.9% vs. 2.4%), as did non-energy industrial goods (0.5% vs. 0.4%). Services inflation also picked up to 4%, slightly higher than the initial forecast of 3.9%.
Core inflation remains unchanged
Meanwhile, the annual core inflation rate, which excludes energy, food, alcohol, and tobacco, remained unchanged at 2.7%, the lowest since February 2022. On a monthly basis, the CPI increased by 0.3%, following a 0.1% decline in September.
