Eurozone inflation rose to 4% in October 2026, up from 3.8% in September, according to figures released by the European Union’s statistics office, Eurostat. Energy prices recorded the sharpest annual increase, climbing 20.8% after rising 18.9% the previous month.
Prices also accelerated across other categories. Services inflation reached 3.3%, compared with 3.2% in September. Food, alcohol and tobacco prices rose 1.6%, up from 1.3%, while non-energy industrial goods increased 1.2%, compared with 1.1%.
The higher inflation comes alongside weaker growth. In the third quarter of 2026, the eurozone economy expanded by 0.4%, down from 0.6% in the second quarter. Growth across the European Union slowed to 0.5% from 0.7% over the same periods.
The combination of rising prices and slower growth poses a challenge for the European Central Bank. At its latest meeting, the ECB kept interest rates at 2.5%. President Christine Lagarde said higher energy prices were weighing on consumer confidence and that more expensive financing could also constrain economic activity.
The inflation figures come as European leaders begin the process of selecting Lagarde’s successor. She has informed European Council President António Costa that she will leave the ECB presidency on February 7, 2027, nine months before her term was due to end. Eurogroup President Kyriakos Pierrakakis has asked member states to submit candidates by November 6, with applications set to be discussed at the Eurogroup meeting on November 9.
Sources: elDiario.es.