The European Central Bank will likely impose future rises in interest rates as the price pressures appear to be intensifying, as the inflation rate in the euro region has once again exceeded earlier expectations to reach a record high.
The 19 nations that use the euro saw an acceleration in consumer price increase to 10. In October, 7%, up from 9. 9% in September, exceeding analysts’ forecasts in a Reuters poll, which was pegged at 10.
According to information released by the European Union Statistics Office (Eurostat) today, Monday, inflation increased by higher than anticipated amounts in Germany, Italy, and France, bringing the overall rate to 2%.
Energy prices continued to stimulate inflation, but imported food and industrial goods prompted prices to rise sharply while the services sector played a marginal role this time.
The European Central Bank raised interest rates of 200 basis points in the past three months and promised more emphasis in December, but the markets began to expect a slowdown in the pace of interest rates in light of recession waving on the horizon and the decrease in gas prices from record high levels .
However, the basic inflation rate’s persistent acceleration, which indicates rising prices and increases the likelihood of high inflation, is sure to worry policymakers.
The euro area’s inflation rate is higher than anticipated by a new threshold.
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