Business & Economy

Inflation in Eurozone hits record high

Brussels, Oct 31 (EFE).- Inflation in the eurozone hit a record high in October as the cost of living continued to climb with soaring energy and food prices, the European statistics office reported on Monday.

According to the latest Eurostat data, the year-on-year inflation rate increased by eight-tenths in October and jumped to 10.7%, setting a fresh grim record.

Energy prices recorded the highest rates at 41.9%, after standing at 40.7% in September, followed by food, alcohol and tobacco (13.1%, compared with 11.8% in September), non-energy industrial goods (6.0%, compared with 5.5% in September) and services (4.4%, compared with 4.3% in September), the report added.

The statistics office added that average household electricity prices in the European Union soared from 22.0 euros per 100 kWh in the first half of 2021 to 25.3 euros per 100 kWh in the first half of 2022.

Average gas prices have also climbed from 6.4 euros per 100 kWh to 8.6 euros per 100 kWh.

The European Central Bank has raised interest rates three times in the last few months to combat soaring prices.

“Our mandate is price stability and we have to deliver on that using all the tools we have and selecting those that will be most appropriate and most efficient. That’s what we are doing today by deciding a rate hike and by changing the interest rate of TLTROs going forward,” ECB chief Christine Lagarde announced on Thursday last week.

Lagarde said the risk of a recession was of concern, particularly for people on low incomes, who are more vulnerable to the “reality of inflation.”EFE


Related Articles

Back to top button