Inflation across the eurozone continued its downward trajectory in October, easing to 2.1 percent from September’s 2.2 percent rate, according to preliminary estimates released Friday by Eurostat. The figure brings price growth tantalizingly close to the European Central Bank’s two percent target, offering fresh evidence that the region’s battle against surging costs may be nearing its conclusion.
The slowdown aligned with economist forecasts and reflects a broader stabilization of consumer prices across the 20-nation currency bloc. However, the quick estimate did not include data for the entire European Union, meaning countries like the Czech Republic were not captured in these initial figures.
Behind the headline number lies a tale of diverging trends across member states. Estonia topped the inflation charts at 4.5 percent, followed by Latvia at 4.2 percent, with Croatia and Austria both recording four percent. At the opposite end of the spectrum, Cyprus registered the bloc’s lowest rate at just 0.3 percent, while France and Italy posted modest increases of 0.9 and 1.3 percent respectively.
Breaking down the components reveals where inflationary pressures persist and where they’re easing. Services inflation actually accelerated, rising to 3.4 percent from September’s 3.2 percent, making it the largest contributor to overall price growth. Food, alcohol, and tobacco prices increased by 2.5 percent year-on-year, down half a percentage point from the previous month.
Meanwhile, non-energy industrial goods saw their inflation rate decline to 0.6 percent from 0.8 percent. Energy prices provided welcome relief, falling 1.0 percent compared to a year earlier, a steeper decline than September’s 0.4 percent drop.
