Price Check

Core Inflation Still Sticky Despite Headline Dip

Eurozone inflation slowed to 2.1% year-on-year in October, down from 2.2% in September and in line with forecasts.

But core inflation, which excludes food and energy, held steady at 2.4%, defying expectations for a slowdown.

The European Central Bank says inflation is on a “benign path,” though services costs remain a concern.

The figures are based on Eurostat’s preliminary flash estimate and may be revised.

Prices Still Rising Where It Hurts

Even as headline inflation dipped, consumers still feel the squeeze. 

• Food, alcohol & tobacco: +2.5%
• Energy prices: –1.0%
• Non-energy goods: +0.6%
• Services: +3.4%

The earlier energy-driven relief is fading, and services costs continue climbing, making inflation feel persistent for households.

ECB Holds Rates, Sees No Urgency to Move

The European Central Bank left its benchmark rate unchanged at 2% for a third straight meeting on Thursday, saying the monetary policy is in a “good place”. Economists are now broadly expecting the rates to stay put for months to come.

ECB chief Christine Lagarde noted the eurozone’s modest 0.2% growth quarter-on-quarter in Q3 beat both market and ECB expectations, and downside risks to growth have eased.

The central bank expects inflation to dip below 2% next year, before climbing back to the target level.