Economy
Inflation rate in the euro area rises over four percent
A torch burns natural gas at an oil well. The rise in prices is driven by energy. Photo: Matthew Brown / AP / dpa
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Consumer prices continue to rise. Around 13 years ago the rate of inflation was also that high. Energy costs are the price drivers.
The inflation rate in the euro area rose over four percent in October. Consumer prices rose by 4.1 percent compared to the same month last year, as the Eurostat statistics office announced on Wednesday in Luxembourg according to a second estimate. This confirms an initial estimate as expected by analysts.
It is the highest rate of inflation since July 2008, when the rate was also 4.1 percent. In the previous month the rate was 3.4 percent. Compared to September consumer prices rose by 0.8 percent.
The price increase was once again driven by energy, which was 23.7 percent more expensive than in the same month last year. Food and beverages were 1.9 percent more expensive than a year ago. Industrial goods and services rose in price to a similar extent. Excluding energy, food and beverages, the price level rose by 2.0 percent. This so-called core rate is viewed by many economists as a reliable measure of inflation.
The medium-term inflation target of the European Central Bank (ECB) of two percent will be exceeded significantly. The central bank rates the development as mostly temporary and expects inflation rates to decline in the coming year. So far, the ECB has not given the prospect of rate hikes.