Eurozone Inflation Rises to 4.0% in October as Surging Energy Offsets Steady Core

Eurozone headline inflation accelerated to 4.0% year-on-year in preliminary October data, up from 3.8% in September and matching market consensus. The increase reached double the European Central Bank's 2.0% target and marked the highest level since September 2023. Gains were driven primarily by energy costs, which surged 20.8% annually, while headline prices rose 0.4% on the month. Core inflation remained unchanged at 2.5%, matching expectations. Divergent trends emerged across member states, with Italy climbing to 5.6% and France rising to 3.8%, while Germany eased to 2.8%.