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Inflation in the eurozone has reached a 13-year high


17 listopada 2021
watermark Economic news

According to the European statistical agency Eurostat, inflation in the eurozone has reached a 13-year high. Annual inflation in 19 eurozone countries in October, according to the final estimate, accelerated to 4.1% from 3.4% a month earlier. The last time such indicators were recorded in July 2008. 


The indicator coincided with the analysts' forecast and preliminary assessment. A year earlier, deflation of 0.3% was recorded in the eurozone. It is worth noting that the current values are twice the target level of the European Central Bank (2%).


Experts note that the main reason for such a strong increase in consumer prices was the rise in energy prices. Energy has again become the strongest factor of price growth – 23.7%. Without taking into account energy indicators, the overall inflation would be only 2.0%. Prices for food, alcohol and tobacco in October as a whole for the year increased by 1.9%, which is much lower than the average level. Services have risen in price by 2.1%.


ECB President Christine Lagarde recently said that a strong inflationary surge could last longer than initially expected. In September, the regulator's economists predicted an inflation rate of 1.7% in 2022 and 1.5% in 2023.


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