Day: 31 October 2024

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Euro zone inflation rises to higher-than-expected 2%

Euro Zone Data

Inflation in the euro zone increased from 1.7% to 2% in October 2024, according to latest figures released on Thursday 31st October 2024, exceeding the forecast of 1.9%. weakening case for jumbo rate cut

Both core inflation and services inflation reportedly remained the same as the previous month.

The markets are anticipating a 0.25% reduction in interest rates by the European Central Bank in December 2024, while analysts have suggested that the latest figures could sway the argument against a more substantial cut.

A reduction of 0.5% has been muted but is now less likely.

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Germany’s inflation climbs to 2.4%

Germany data

In October 2024, Germany’s inflation rate rose to 2.4%, as per the preliminary figures from the Federal Statistical Office, Destatis

This increase defied the expectations of analysts, who had predicted a 0.1% decrease, thus narrowly preventing Germany from entering a technical recession, defined by two successive quarters of economic decline.

The inflation rate is adjusted for consistency across the eurozone.

Following this, Destatis released a preliminary report earlier on Wednesday 30th October 2024 showing that Germany’s GDP grew by 0.2% in the third quarter, in comparison to the preceding three months.

Previously, inflation had fallen to 1.8% in September 2024, after reaching the European Central Bank’s target of 2% in August.