Energy drives the eurozone rate to a three-year high
Annual inflation across the eurozone reached 4% in October 2026, the strongest reading in more than three years, according to a flash estimate published by Eurostat. The figure compares with 3.8% in September. Energy was the main driver, with prices up 20.8% year on year after a 18.9% rise the previous month. Prices for non-energy industrial goods edged up 1.2%, slightly above September's 1.1%.[S1]
Underlying price pressure looked steadier. Core inflation, which strips out energy and food, held at 2.5% for the month. That stability suggests the headline surge is concentrated in energy rather than spreading broadly through the basket of goods and services the index tracks.[S1]
Germany diverges as France and Italy post higher rates
Among the bloc's largest economies, France recorded annual inflation of 3.8% in October and Italy 5.6%. Germany was the notable outlier, with its rate easing from 3.3% to 2.8% over the period. According to Euronews, the decline was chiefly the result of a cut in fuel taxes that took effect on October 1 and is scheduled to remain in force through the end of the year.[S1]
Markets weigh a December rate move
Analysts assign a high probability to an increase in key interest rates at the European Central Bank's December meeting. On October 29 the ECB left its key rates unchanged, following two increases in June and September of this year. The central bank has pointed to rising energy prices as a source of inflation risk and a drag on growth.[S1]
The regulator links those risks to several factors: the conflict in the Middle East, Russia's war against Ukraine, prolonged interruptions to energy supplies, worsening sentiment on global financial markets, and renewed trade tensions between major economies.[S1]
Taiwan's inflation cools but stays above target
Separately, Taiwan's annual inflation rate slowed to 2.33% in October 2026 from a 31-month high of 2.74% a month earlier, though it remained above the central bank's 2% target for a sixth straight month. Food price growth eased to 2.05% from 2.65%, clothing to 0.64% from 2.30%, housing to 2.07% from 2.38%, education and entertainment to 2.94% from 3.18%, and miscellaneous goods and services to 1.75% from 2.77%.[S2]
Transportation and communication costs accelerated to 4.36% from 4.08%, and health costs rose to 1.06% from 0.70%. On a seasonally adjusted monthly basis, consumer prices increased 0.2% in October, up from 0.18% in September and the largest monthly gain since May.[S2]
