Eurozone inflation climbed to new record high of 10.7% in October – Saudi Gazette

Eurozone inflation climbed to new record high of 10.7% in October – Saudi Gazette

BRUSSELS — Inflation in the eurozone is expected to have reached a new record high of 10.7% in October.

If confirmed later in November by Eurostat, the bloc's official statistics agency, this would be the first inflation reading crossing the 10% threshold.

The increase was fueled by energy prices, which Eurostat estimates were 41.9% higher than in the same month last year. Prices for food, alcohol and tobacco are meanwhile believed to have risen by 13.1% year-on-year.

Inflation was at 9.9% in September.

Baltic countries remain the most deeply affected with the annual inflation remaining above the 20% mark. Estonia leads the pack with a 22.4% estimate.

That's largely because they are particularly vulnerable to fluctuation in energy markets.

According to Eurostat, the price of natural gas for household consumers soared by 154% and 110% in Estonia and Lithuania respectively between the first half of 2021 and the first six months of this year.

Meanwhile, France retained its position as the least impacted country although annual inflation for October is seen at 7.1%. Italy, whose annual rate is forecast at 12.8%, has recorded the highest month-of-month increase with a 4% jump.

The European Central bank, whose mandate is to keep inflation in the euro zone close to 2%,