The year-on-year growth rate of the price level increased again in October in countries paying in the euro. However, the geographic structure of inflation is changing. It has now started to move from the eastern part of the eurozone towards the old member states of the European Union.
Prices rose by 1.5 percent
According to Eurostat’s preliminary estimate, the October year-on-year inflation rate reached 10.7 percent. This is 0.8 percentage points more than in September. Month-on-month, prices rose by a relatively high 1.5 percent. Energy remained at the forefront of price increases, which are almost 42 percent more expensive year-on-year. Food prices also rose significantly.
The highest inflation is in the Baltics
However, we should not be misled by the relatively acceptable figure for the entire eurozone. There are significant differences behind the average figure of 10.7 percent. Inflation continues to be dominated by the Baltic states with inflation over 20 percent. However, the dynamics of price growth there is slowing down and shifting to the west. Italy (from 9.4 to 12.8 percent), Belgium and Germany recorded the biggest jump in inflation.
The Netherlands is facing inflation close to the 17 percent mark for the second month in a row. At the same time, the number of countries with single-digit annual inflation is decreasing. France can boast the lowest rate of price growth (7.1), while prices grew the fastest in Estonia (22.4).
