Consumer prices: Inflation rate in the Eurozone rises to 2.0 percent

Inflation in the euro zone rose significantly in October. Consumer prices rose by 2.0 percent compared to the same month last year, as the Eurostat statistics office announced on Thursday in Luxembourg according to an initial estimate. In September the inflation rate was only 1.7 percent. Compared to the previous month, consumer prices rose by 0.3 percent.

Analysts had expected inflation to rise in October. However, they had only assumed an average inflation rate of 1.9 percent. The significant increase in inflation can be explained by the development of prices in the services sector and by the cost of food, both of which have become more expensive than average. In contrast, the price of energy fell significantly in October compared to the previous year.

Core inflation excluding volatile prices for energy, food and beverages remained at 2.7 percent in October. Core inflation reflects fundamental inflation and, in the opinion of many economists, represents the inflation trend better than the overall rate.

The European Central Bank (ECB) is aiming for an inflation rate of two percent in the medium term. The central bank last reduced the benchmark deposit interest rate by 0.25 percentage points to 3.25 percent in October. Many economists expect another rate cut at the next interest rate meeting in mid-December.