Euro area inflation hit 4.0% in October, the highest since September 2023, with energy doing the work and core steady at 2.5%. Markets price a December ECB hike. Sweden's first hike since 2023 got an inflation undershoot the next day.
AMP's Shane Oliver says the in-line 4% print still leaves the ECB on track for another hike next month, with core stuck at 2.5%. Source
Euro area inflation hit 4.0% in October, according to Eurostat's flash estimate of the Harmonised Index of Consumer Prices (HICP). That matched the consensus and is the highest reading since September 2023, up from 3.8% in September. Prices rose 0.4% on the month. Core, which strips out energy, food, alcohol and tobacco, held at 2.5%, so this is an energy story: energy inflation climbed to 20.8% from 18.9%, while services edged up to 3.3% from 3.2%.
