Eurostat’s flash estimate showed Wednesday that annual inflation in the euro area rose to 4% in October, its highest level in more than three years, as energy prices climbed sharply.
The rate was up from 3.8% in September. It matched the 4% economists had expected. Consumer prices also rose 0.4% over the month.
Energy inflation rose to 20.8% year over year, compared with 18.9% in September. It was the fastest-rising major category. Other components also edged higher.
Services inflation reached 3.3%. Prices for food, alcohol and tobacco rose 1.6%. Non-energy industrial goods increased 1.2%.
The measure excluding energy, food, alcohol and tobacco remained at 2.5%. This suggested that price increases beneath the overall figure were steadier than the overall inflation rate. The overall rate was twice the European Central Bank’s 2% target.
This puts attention on how policymakers will respond to renewed price pressure. The October figure is preliminary. Eurostat’s flash estimate may be updated when fuller data are released.