Inflation in euro area jumps 10.7% in October


Shoppers walk on the Westenhellweg main shopping street in the city center of Dortmund, Germany, on Nov. 19, 2021. The Euro area, which includes Germany, saw inflation increase to 10.7% in October over last year. File Photo by Friedemann Vogel/EPA-EFE

Oct. 31 (UPI) — Inflation in the euro area jumped to 10.7% in October, creating more pressure on the European Central Bank to take stronger action as Russia’s invasion of Ukraine continues to harm western markets.

It marked the first time the 19-country euro area inflation rate has skied above the 10% mark since its formation. Energy cost, at the heart of the European Union’s sanctions against Russia because of the war, increased 41.9% in October from the same time in 2021, compared to 40.7% in September.

Eurostat said food, alcohol and tobacco increased 13.1%, compared with 11.8% in September, non-energy industrial goods jumped 6% compared with 5.5% in September, while services ballooned 4.4% compared with 4.3% in September.

Inflation rates in euro area companies varied greatly — from 7.1% in France in October and 7.3% in Spain, to 11.6% in Germany, to 22.4%in Estonia and 22% in Lithuania.

“This is a significant acceleration,” said Lucrezia Reichlin, an economist at the London Business School. “Inflation is becoming broad-based.”

Despite Germany’s double-digit inflation woes, its economy grew 0.3% in the third quarter, buoyed by consumer spending. Sweden’s economy grew by 0.7% and Italy’s economy expanded by 0.5%.

“The increase in euro area GDP in the third quarter does not alter our view that the euro area is on the cusp of a recession,” Andrew Kenningham, chief Europe economist at Capital Economics, said.

“But with inflation having jumped to well over 10%, the ECB will prioritize price stability and press on with rate hikes regardless.”



Read original article here

Denial of responsibility! Vigour Times is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment
Enable Notifications OK No thanks