Eurozone Inflation At A Record High 10.7%: The Telegraph

Eurozone inflation has surged past expectations to hit a new record high, piling more pressure on the European Central Bank (ECB) to raise interest rates, The Telegraph reported.

Photo Insert: Higher prices and a bleak winter energy crisis mean the bloc could be heading for a recession.

Consumer price growth across the bloc surged to 10.7% in October, a jump from 9.9% a month earlier. Almost half the countries have higher inflation than the United Kingdom.

Energy prices continue to drive inflation higher after Russia slashed gas supplies to the continent, but food and imported industrial goods also pushed up prices.

The figures will reignite calls for the ECB to act aggressively to bring down inflation. The central bank has increased rates by a combined 200 basis points in the last three months, but has promised further action as soon as December.

Meanwhile, GDP growth slowed to 0.2% in three months to September – from 0.8% in the second quarter. Higher prices and a bleak winter energy crisis mean the bloc could be heading for a recession.

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