Eurozone inflation hits record high of 10.7% – recession risks spreading
Euro area annual inflation is expected to be 10.7% in October 2022, up from 9.9% in September, according to a flash estimate from Eurostat, the statistical office of the European Union.
Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in October (41.9%, compared with 40.7% in September), followed by food, alcohol & tobacco (13.1%, compared with 11.8% in September), non-energy industrial goods (6.0%, compared with 5.5% in September) and services (4.4%, compared with 4.3% in September).1
The 10.7% inflation rate for the month of October represents the highest-ever reading since the formation of eurozone.
“Inflation surged again in October and are a proper Halloween nightmare for the European Central Bank (ECB),” analysts at Pantheon Macroeconomics told CNBC.2
Salomon Fiedler, an economist at Berenberg, said the “continuing surge in consumer prices and still-resilient domestic demand in the summer indicate a risk that the ECB may hike rates by 75 basis points in December, rather than the 50 basis points we currently expect.”
“Recession risks are spreading,” Spanish central bank Governor Pablo Hernandez De Cos said today.3
“Decisive action by us in the current juncture will support medium-term growth, by reducing inflationary pressures and avoiding a de-anchoring of inflation expectations.”
References:
1 Euro area annual inflation up to 10.7% – Flash estimate – October 2022 – eurostat – October 31, 2022
2 Euro zone inflation hits record high of 10.7% as growth slows sharply – CNBC – October 31, 2022
3 Euro-Zone Inflation Soars to New Record as Economy Fades – Bloomberg – October 31, 2022
Featured image credit: eurostat
If you value what we do here, create your ad-free account and support our journalism.
Your support makes a difference
Dear valued reader,
We hope that our website has been a valuable resource for you.
The reality is that it takes a lot of time, effort, and resources to maintain and grow this website. We rely on the support of readers like you to keep providing high-quality content.
If you have found our website to be helpful, please consider making a contribution to help us continue to bring you the information you need. Your support means the world to us and helps us to keep doing what we love.
Support us by choosing your support level – Silver, Gold or Platinum.
Other support options include Patreon pledges, one-off payments using PayPal and purchasing products from our webshop.
Thank you for your consideration. Your support is greatly appreciated.
Sincerely,
Teo Blašković
Commenting rules and guidelines
We value the thoughts and opinions of our readers and welcome healthy discussions on our website. In order to maintain a respectful and positive community, we ask that all commenters follow these rules:
We reserve the right to remove any comments that violate these rules. By commenting on our website, you agree to abide by these guidelines. Thank you for helping to create a positive and welcoming environment for all.