Inflation: At 3.2% in October – Which products caught fire [πίνακες] –

Inflation was 3.2% in Greece in October (from 3.1% in September) and 2% in the Eurozone (from 1.7% in September), according to Eurostat. It is clear that in both cases there has been an increase in prices, while on a monthly basis, Greece recorded an increase of 0.2%, which implies continuity of accuracy, contrary to what the government claims.

Looking at the main components of euro area inflation, services posted the highest annual rate in October (3.9%, flat compared to September), followed by food, alcohol and tobacco (2.9% , compared to 2.4% in September), non-energy industrial goods (0.5%, compared to 0.4% in September) and energy (-4.6%, compared to -6.1 % in September).

Inflation “raised” in Germany

Finally, for the time being, on the downward trend in inflation in Germany. In October, the consumer price index rose sharply to 2% from 1.6% in September, the Federal Bureau of Statistics said today, based on preliminary data.

Core inflation, which excludes food and energy, even rose to 2.9%.

Consumers are “suffering” from the services sector, holiday packages and insurance, which are up 4% compared to October 2023.

Food also cost 2.3% more, while in energy, there was a 5.5% decrease.

The Bundesbank, however, expected inflation in Germany to rise again. Especially in food, due to the recent increase in the prices of raw materials. In addition, inflation in services is likely to remain high for some time due to increased wages.

Inflation: At 1.5% in France

Inflation in France came in below the European Central Bank’s 2% target for the second consecutive month, strengthening the case for continued interest rate cuts.

Consumer prices in the eurozone’s second-largest economy rose 1.5% from a year earlier in October (from 1.4% in September), statistics agency Insee said on Thursday. The reading is in line with the average estimate in a Bloomberg survey of analysts and compares with 1.4% in September.

Falling inflation across the 20-nation eurozone has allowed the ECB to cut the deposit rate three times this year, and policymakers expect further cuts. However, they have increasingly divergent views on the timing and total amount, and the ECB expects a bumpy road until it can sustainably reach its target in the first half of 2025.

An increase in Spain as well

Spain’s annual inflation stood at 1.8% in October, the country’s National Statistics Service (INE) announced in its preliminary report. The rate was up from 1.5% in September and beat analysts’ expectations.

The rise in annual inflation is mainly due to the rise in fuel costs, while gas and electricity prices also contributed, albeit to a somewhat lesser extent.

On a monthly basis, consumer prices added 0.6%. The Harmonized Index of Consumer Prices rose 1.8% year-on-year and rose 0.4% compared to September.

Source OT