Breaking: Eurozone Preliminary Inflation soars 10.7% YoY in October vs. 9.8% expected
The annualized Eurozone Harmonised Index of Consumer Prices (HICP) jumped by 10.7% in October vs. September’s 9.9%, the latest data published by Eurostat showed on Monday. The market forecast was for a 9.8% print.
The core figures climbed to 5.0% YoY in October when compared to 4.9% expectations and 4.8% recorded in September.
On a monthly basis, the old continent’s HICP accelerated to 1.5% in October vs. 0.6% expectations and 1.2% previous. The core HICP rose 0.6% this month against 1.2% expected and 1.0% seen in July.
The Euro area figures are reported a trading day after Germany’s annual inflation for October, which surged 11.6% and beat estimates following a 10.9% growth reported in September.
The bloc’s HICP figures hold significance, as it helps investors assess the European Central Bank’s (ECB) monetary policy normalization course. The ECB inflation target is 2%.
Key details (via Eurostat)
“Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in October (41.9%, compared with 40.7% in September), followed by food, alcohol & tobacco (13.1%, compared with 11.8% in September), non-energy industrial goods (6.0%, compared with 5.5% in September) and services (4.4%, compared with 4.3% in September).”
EUR/USD reaction
The shared currency is unfazed by the mixed Eurozone inflation data, as EUR/USD is keeping the red near 0.9940, down 0.25% on the day.
Author
FXStreet Team
FXStreet
