Inflation in Europe jumped much higher than expected as the war in Ukraine and weak monetary policy continue to push consumer prices upward, according to the latest data from Eurostat.
- Y-O-Y: Annual inflation was 10.7% in October, up from 9.9% in September and higher than the 10.2% economists had predicted.
- M-O-M: Consumer prices were up 1.5% from just last month.
Energy Costs. Energy prices continue to put upward pressure on inflation with energy costs increasing 6.5% from last month and are now up 41.9% year-over-year which is almost back to the 42.0% high reported in June.
- Food, alcohol, and tobacco were up 13.1% and the core index was at 6.9%
Reminder: The European Central Bank announced that they would be raising the three key ECB interest rates by 75 basis points last week.
The troubling inflation data isn’t hurting markets in Europe, yet. Germany’s DAX is up 0.29% and London’s FTSE was up slightly with a 0.15% gain halfway through the trading day.
- Asian markets were mixed with Japan in the green, up 1.78%, while China was in the red with Hong Kong’s Hang Seng index down 1.78% and Shanghai’s was down 0.77% at the close.
🇺🇸 US Markets are down across the board before the open with Nasdaq futures leading the way down 0.50% followed by S&P and Dow futures down 0.36% and 0.30%, respectively.