Eurozone inflation soars beyond forecasts to hit record 10.7%

The data shows inflation within the eurozone has hit double digits for the first time ever

editor: REMIX NEWS
author: Thomas Brooke

Inflation across the eurozone soared to a record high of 10.7 percent in October as citizens continue to struggle with the ongoing cost-of-living crisis.

The figure, released by Eurostat on Monday, showed an increase of 0.8 percent points from the 9.9 percent figure for September. Economists had predicted a more modest rise to 10.2 or 10.3 percent.

A rise in energy costs from 40.7 percent to 41.9 percent in September and an increase in food, alcohol, and tobacco from 11.8 percent to 13.1 percent contributed to the rise of the cost of living across the continent.

Inflation of industrial goods and services also rose to 6 percent and 4.4 percent respectively.

The eurozone economy barely avoided recession in its third quarter with growth of just 0.2 percent, down on the 0.8 percent growth experienced in the second quarter. The combination of stifled growth and rising prices are warning signs of a difficult winter ahead.

According to preliminary flash estimates, France and Spain’s GDP increased by 0.2 percent for the quarter, while German GDP was up 0.3 percent and the Italian economy was up 0.5 percent. Czechia retained the same level of growth.

Meanwhile, Belgium and Austria’s GDP contracted by 0.1 percent, while the Latvian economy receded by a worrying 1.7 percent.

Further estimates for the third quarter are expected to be released on Nov. 15.

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