Eurozone Inflation Rate Confirmed at 28-Month High

Eurozone's consumer prices increased 0.5 percent year-on-year in October 2016, following a 0.4 percent gain in the previous month and in line with preliminary estimate. It was the highest inflation rate since June 2014, boosted by higher cost of restaurants and cafés, rents and tobacco.

The largest upward impacts to euro area annual inflation came from restaurants and cafés (+0.07 percentage points), rents and tobacco (both +0.04 pp); while gas (-0.12 pp), vegetables (-0.06 pp) and milk, cheese and eggs (-0.05 pp) had the biggest downward impacts.

Compared with September 2016, annual inflation rose in twenty-one Member States, remained stable in one and fell in six. The highest annual rates were recorded in Belgium (1.9 percent) and Austria (1.4 percent). The lowest annual rates were registered in Bulgaria and Cyprus (both -1 percent).

Core inflation which excludes energy, food, alcohol and tobacco was recorded at 0.8 percent, the same as in September. Excluding fuel only, the inflation eased to 0.7 percent from 0.8 percent the previous month.  

On a monthly basis, consumer prices increased by 0.2 percent, easing from a 0.4 percent growth in September and missing market expectations of a 0.2 percent rise.

Eurozone Inflation Rate Confirmed at 28-Month High

Eurostat | Joana Ferreira |
11/17/2016 10:14:09 AM