Annual inflation in the euro area increased to 2% in October compared to 1.7% in September, according to a preliminary report by Eurostat on Thursday. The European Central Bank has warned that the Eurozone is likely to see a temporary rise in prices before inflation drops to the 2% target next year. On a monthly basis, inflation was at 0.3%.
The main contributors to inflation are expected to be services, whose prices are projected to rise by 3.9% compared to October 2023, food, alcohol and tobacco at 2.9% and non-energy industrial goods at 0.5%, while energy prices are seen falling by 4.6%. Core inflation, excluding energy, food, alcohol and tobacco, stood at 2.7% annually and 0.2% month-on-month.
