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Bert Colijn, Senior Economist at ING, notes that Eurozone’s headline inflation increased to 2.2% in October from 2.1% last month and the increase was mainly driven by stronger energy price growth and the weaker euro.

Key Quotes

“Core inflation rebounded stronger than expected, up to 1.1% from 0.9%, partly due to an increase in package holiday prices.”

“The increase in underlying inflation seems to have been rather small. The labour market is creating more wage pressures, but the pickup in wage growth remains modest for the moment. Unemployment actually increased a little bit in September and the unemployment rate has been stable at 8.1% since July. This could reflect some of the business uncertainty about the outlook, slowing the process of increasing wage pressure.”