Record inflation in the EU. The annual inflation rate in the euro area stood at 10.7% in October after the previous 9.9%, due to the effect of inflation in Germany, Italy and France which increased more than expected, according to Eurostat data.
The expectation of the analysis was that inflation would increase in the month ending today at 10.2-10.3%. Energy prices continued to drive inflation, but imported food and industrial goods also pushed prices up, although services played a marginal role this time around.
The ECB has raised rates by 200 basis points in the past three months and promised further tightening as early as December. But markets have begun to anticipate a slowdown in rate hikes as a recession looms and gas prices have fallen from all-time highs.