Eurozone inflation now at two-year low

In October, euro zone inflation fell to a two-year low of 2.9%, dropping from 4.3% in the previous month, below economist estimates. Core inflation, excluding volatile food and energy prices, decreased to 4.2% from 4.5%. The highest annual rates were in food, alcohol & tobacco (7.5%) and services (4.6%). Energy prices notably dropped. The euro zone has been contending with persistently high inflation over the last 18 months, peaking at 10.6% in October 2022. The European Central Bank responded with ten consecutive interest rate hikes, reaching a record high of 4%, but paused last week despite potential energy cost risks due to ongoing geopolitical tensions.