Eurozone Inflation Rises to 4%, Hitting a Three-Year High Amid Surging Energy Costs

Inflation in the eurozone rose to 4% in October, its highest level in more than three years, as rising energy bills continue to drive up the cost of living across the bloc. Eurostat’s flash estimate showed that annual inflation increased from 3.8% in September, exactly matching economists’ forecast of 4%. In October alone, prices rose by 0.4% compared with the previous month, Euronews reports. This is the highest reading since September 2023, when inflation stood at 4.3%. It also means that price growth is now twice the European Central Bank’s 2% target. Core inflation, which excludes energy, food, alcohol and tobacco because their prices tend to fluctuate significantly from month to month, remained at 2.5%. This figure also matched expectations. The gap between the two indicators highlights what has happened over the past month: energy is the main driver of the increase, while underlying price pressures have so far remained unchanged.