Europe’s inflation rate reached a record high of 10.7% in October, worsening a cost-of-living
crisis on the continent.
Preliminary data from Europe’s statistics agency showed that headline inflation is now at its
highest level ever. The 19-member economic bloc is grappling with higher prices across the
board, notably for food and energy products.
The latest inflation data follows estimates from individual countries released last week. Italy’s
inflation rate came in at 12.8% on an annualized basis, while Germany’s inflation rate spiked to
11.6%.
The European Central Bank raised its benchmark interest rate by 75-basis points for a second
consecutive time last week and said that it is planning further rate increases in the coming
months in an attempt to bring consumer prices lower. The central bank targets inflation at 2%.
At the same time, new growth figures showed that gross domestic product (GDP) in Europe
rose a tepid 0.2% in October.
So far, Europe has avoided a recession, but an economic slowdown is taking hold. Several
economists predict that there will be an economic contraction in Europe in coming months.
The Euro currency traded below parity with the U.S. dollar immediately following the latest
economic data being released.
