"Inflation across the Eurozone dropped to 2.1% in October, welcome news for the European Central Bank (ECB) as the figure closes in on its 2% target. Prices in the Eurozone are currently taking a different trajectory to those in the UK and the US, where inflation sits at 3.8% and 3% respectively. The strength of the Euro this year has helped to contain the worst effects of US tariffs, keeping a lid on the price of imports to some extent for European businesses and consumers and combatting the potential for imported inflation."
"Energy prices remain broadly stable after months of declines, while food and industrial goods inflation show only modest movement. However, the persistence of services inflation suggests that underlying domestic costs remain sticky, posing a challenge for policymakers eager to declare a final victory over inflation. This fall in inflation follows the ECB's decision to hold rates steady at its October meeting."
Inflation across the Eurozone eased to 2.1% in October, moving closer to the European Central Bank's 2% objective. Inflation in the Eurozone contrasts with higher rates in the UK (3.8%) and the US (3%). A stronger euro has helped offset some imported inflation by blunting the impact of US tariffs on import prices. Energy prices are broadly stable after months of declines, and food and industrial goods inflation show only modest movement. Persistent services inflation indicates sticky domestic costs. The ECB faces a delicate balance between avoiding premature easing and preventing a deeper economic slowdown.
Read at London Business News | Londonlovesbusiness.com
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