November 2, 2022: In October, Eurozone inflation increased above the 10% level, focusing on the severity of the living cost crisis in the region and pressure on the European Central Bank.

On Monday, Primary data from Europe’s statistics office displayed headline inflation at a yearly 10.7% last month. This represents the highest-ever monthly reading since the euro zone’s formation. The 19-member bloc has been sharing higher prices, particularly on energy and food, for the previous 12 months. But the surge has been accentuated by Russia’s invasion of Ukraine in February.

This proved to be the chance, too, with energy costs expected to have had the highest annual increase in October, at 41.9% from 40.7% in September. Food, alcohol, and tobacco prices also rose in the same period, surging 13.1% from 11.8% in the last month.

Monday’s data came after individual countries reported flash estimates last week. In Italy, headline inflation exceeded analysts’ expectations at 12.8% year-on-year. Germany stated inflation increased to 11.6%, and the number hit 7.1% in France. The various values reflect national governments’ estimates and the dependency level that their nations have, or had, on Russian hydrocarbons.

There are, Although, euro nations where inflation surged by over 20%. This includes Estonia, Latvia, and Lithuania.

On Thursday, they confirmed further rate hikes in the future months to bring prices down. It said it had made “substantial progress” to normalize rates in the area, but it “expects to increase interest rates further after following the timely return of inflation to its 2% medium-term inflation target.”

The ECB plans to increase rates by 75 basis points last week for a second consecutive time.

At a different press conference, ECB President Christine Lagarde added that the likelihood of a recession in the eurozone had intensified.

On Monday, Growth figures released showed a GDP figure of 0.2% for the euro area. This follows the province’s increase of 0.8% in the second quarter. Only Belgium, Latvia, and Austria are joining GDP rates below zero.