Euro area annual inflation at over 2-year low in October

By Tuba Ongun

The euro area annual consumer inflation rate eased to an over two-year low in October, driven by plunging energy prices, according to flash estimates released on Tuesday

Consumer prices rose 2.9% year-on-year in October, the slowest pace since July 2021, the Eurostat data showed.

Headline inflation cooled from September's 4.3%, while energy prices plummeted 11.1% annually in October after falling 4.6% in the prior month.

The yearly price hike for food, alcohol, and tobacco eased to 7.5% this month from 8.8% in September.

On a monthly basis, the euro area consumer price index edged up by 0.1% in October.

Energy prices in the single currency area dropped 1.1% month-on-month in October, while food prices increased 0.2%.