Inflation in the eurozone in October slowed to the lowest since July 2021

According to the statistical office of the European Union, in October, consumer prices in the eurozone increased by 2.9% year-on-year, which is the lowest increase since July 2021. These final data did not surprise market participants, coinciding with preliminary indicators and analysts' forecasts. 

In September of this year, inflation in the eurozone amounted to 4.3% in annual terms, in October 2022 it was at the level of 10.6%. On a monthly basis, consumer prices in the eurozone rose by 0.1% in October (+0.3% in September).

Despite a significant decrease in inflation rates, they still exceed the European Central Bank's target level of 2%. 

Core inflation (CPI Core index, excluding food and energy) in October fell to 4.2% in annual terms, which is also the lowest since July 2022.

In October, energy prices fell by 11.2%, which softened inflation. While food, alcohol and tobacco products rose in price by 7.4%, and the cost of services increased by 4.6%.