Eurozone inflation hits three-year high

Annual inflation in the eurozone accelerated to 4% in October, up from 3.8% in September, reaching its highest level in three years.

According to Reuters, cited by Report, Eurostat said the figure was in line with economists" forecasts in a Reuters poll. Core inflation, which excludes food and energy prices, remained unchanged at 2.5%.

Reuters noted that rising energy costs amid the US war against Iran were the main driver of accelerating inflation. Price growth in services picked up to 3.3%, while industrial goods prices rose by 1.2%. Unprocessed food prices increased by 4.6%.

The European Central Bank (ECB) has already raised interest rates twice this year. According to the news agency, ECB policymakers have left the door open to another rate hike in December.

The ECB expects inflation to remain above 4% for most of the first half of 2027 before easing to a level slightly above 2%.