Inflation in the euro zone increased in October at the fastest rate in almost six years with the support of energy prices, the statistics office of the European Union said on Friday. Eurostat confirms its previous forecasts. Reading the basic inflation rate, which excludes volatile energy and food prices, has been adjusted. Eurostat said consumption prices in the eurozone of 19 nations rose 2.2 percent year-on-year in October, compared to the 2.1 percent increase in September and an increase of 2 percent in August. This is the biggest increase since December 2012.
Eurostat reviewed underlying inflation to 1.2% from a previous reading of 1.3%. But it continues to grow at a faster pace than in September, which was 1.1%. Monthly, inflation rose 0.2% in October in line with market expectations, but decreased by 0.5% in September. The lowest underlying index, which many come with the market, excludes energy, food, tobacco and alcohol prices up to 1.1 percent year-on-year. Underlying inflation was driven mainly by energy prices, which rose 10.7 percent year-on-year in October while other industrial goods rose by only 0.4 percent. Inflation in the services sector, the largest in the euro zone, was 1.5 percent year-on-year. But prices fell 0.3% monthly.