Eurozone CPI rose 4.0% YoY in October, up from 3.8% in September and the highest since Sep 2023, ECB data showed, taking inflation to roughly double the ECB's 2% target and strengthen the case for further tightening. President Lagarde said policy dir

2026-11-04

Eurozone CPI rose 4.0% YoY in October, up from 3.8% in September and the highest since Sep 2023, ECB data showed, taking inflation to roughly double the ECB's 2% target and strengthen the case for further tightening. President Lagarde said policy direction is clear; several Governing Council members warned this week October's pause does not mean the tightening cycle is over. Investors and analysts expect the ECB to act in December, when updated quarterly staff projections for the 21-member euro area will be published. Markets price the deposit rate rising from 2.5% now to around 3% or higher next year. Inflationary pressure remains concentrated in energy, but the ECB aims to prevent pass-through to wages and prices; its internal wage tracker projects a marked slowdown in eurozone wage growth by 2027.

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