Eurozone inflation beat past estimates in Oct., reaching a 13-year high, worsening a policy dilemma for the ECB, which has underestimated consumer price growth over the past year.
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Inflation in the 19 countries bloc rose to 4.1% in October, up from 3.4% a month earlier and ahead of the consensus outlook of 3.7%.
The figure was backed by higher energy prices, growing price pressures, and tax increases that are hampering industrial production, more so in car manufacturing.
Eurostat has projected that Ireland’s annual inflation rate jumped sharply to 5.1% from 3.8% in September.
Eurozone energy prices alone rose by 23% compared to a year earlier, making it the largest driver to inflation. Services recorded an inflation of 2.1%.
At 4.1%, consumer price growth is now more than double the ECB’s projections.
Core inflation rate excluding food and fuel prices and a narrower gauge that excludes alcohol and tobacco products both rose to 2.1% from 1.9%.