Eurozone inflation hits double digits for first time

Eurozone inflation surged past expectations to hit double digits for the first time, piling pressure on the European Central Bank to keep raising interest rates amid warnings that prices have not yet peaked.

Inflation jumped to 10.7pc in the year to October, according to Eurostat. This is higher than the 10.3pc increase expected by economists and up from 9.9pc the previous month.

Almost half of the eurozone is experiencing faster price growth than Britain, with the Bank of England expecting UK inflation to peak at just below 11pc in October.

This includes Germany, where inflation rose to 11.6pc in October, the highest since reunification in 1990, and Italy, where electricity prices jumped 59pc to reflect an increase in wholesale costs, pushing inflation up to 12.8pc.

Inflation remains highest among the Baltic nations, which are less shielded from fluctuations in energy prices than the rest of the bloc. Inflation in Estonia stood at 22.4pc in October.

The increase was driven by soaring energy prices after Russia slashed gas supplies to the Continent.


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