Economy

ECB vs inflation

Inflation in the euro zone slows down to 2.9 percent  

Inflation in the euro zone slowed to 2.9 percent in October - the lowest level since July 2021. Expected was 3.1 percent, according to Trading Economics.  

 

Core inflation, which strips out food and energy prices, increased during the month by an annualized 4.2 percent, which was in line with expectations.  

 

Food, alcohol and tobacco increased the most, with 7.5 percent at an annual rate, compared to 8.8 percent in September. Next come services, which increased by 4.6 percent.  

 

The figures are preliminary. 

 

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The eurozone economy is growing more slowly than expected 

Eurozone GDP rose 0.1 percent in the third quarter, compared to the same period last year. This is shown by Eurostat's rapidly calculated indicator. 

 

It was somewhat lower than expectations, which according to Trading Economics' consensus forecast was 0.2 percent. 

 

If you compare instead with the second quarter of 2023, GDP fell by 0.1 percent during the period.  

 

The figures are preliminary and may be revised.

 

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The US economy is pulling away - the eurozone behind since 2008  

The gap between the US and European economies is widening. Growth is going in different directions and Russia's invasion of Ukraine weighs on the eurozone's future prospects, writes the Wall Street Journal.  

 

Eurostat's preliminary figures show that GDP growth for the eurozone fell by 0.1 percent in the third quarter compared to the previous quarter. It is quite different from the USA, whose GDP instead increased by 4.9 percent, a growth rate more than twice as high compared to the previous quarter. 

 

The newspaper writes that the eurozone's growth has fallen behind since the 2008 financial crisis, that the gap has widened since the covid pandemic, and is now widening further after Russia's invasion of Ukraine.