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More expensive services, food drive euro zone inflation in Oct

Published 11/17/2023, 05:09 AM
Updated 11/17/2023, 05:15 AM
© Reuters. FILE PHOTO: Customers shop at the fruits and vegetable section in a Carrefour supermarket in Montesson near Paris, France, September 13, 2023. REUTERS/Sarah Meyssonnier/File Photo

BRUSSELS (Reuters) - More expensive services and food were the main drivers of consumer price growth in the euro zone in October, data showed on Friday, as the EU's statistics office confirmed year-on-year inflation slowed sharply.

Eurostat said consumer inflation in the 20 countries using the euro decelerated to 2.9% year-on-year in October from 4.3% in September after prices rose 0.1% month-on-month.

Price rises in the services sectors, the biggest part of the euro zone economy, added 1.97 percentage points to the final year-on-year number and more expensive food, alcohol and tobacco added another 1.48 percentage points.

© Reuters. FILE PHOTO: Customers shop at the fruits and vegetable section in a Carrefour supermarket in Montesson near Paris, France, September 13, 2023. REUTERS/Sarah Meyssonnier/File Photo

A sharp fall in energy prices subtracted 1.45 points from the final number while non-energy industrial goods added another 0.9 percentage points.

The European Central Bank wants to keep inflation at 2.0% over the medium term and has raised interest rates to record highs to slow down price growth, at the same time slowing euro zone economic growth.

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