August 19, 2022

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German inflation jumped to 4.6% in October as the European Central Bank kept policy unchanged

German inflation jumped to 4.6% in October as the European Central Bank kept policy unchanged

High inflation in Germany intensified in October, driven by continued increases in oil and gas and a global contraction in supplies.

Consumer prices rose 4.6% from a year earlier, more than economists had expected. The statistics office said in a statement Thursday that energy is more expensive by 18.6 percent.

The data arrived within minutes of European Central Bank She announced that she would keep monetary policy on hold for now, suggesting that President Christine Lagarde will reiterate her view that the rebound is largely temporary.

Central banks elsewhere, such as New Zealand and the United Kingdom, have begun raising interest rates or signaling plans to do so. European Central Bank policy makers have announced a revision of their instruments for the month of December, and while some upward revisions to inflation expectations are expected, they are unlikely to be strong enough in the medium term to justify the sudden change in attitude and direction.

The Bundesbank said in its latest monthly report that price growth in Germany, already at the fastest pace in nearly three decades, could accelerate further in the coming months before slowing next year.

Spain reported a spike in inflation to 5.5% earlier on Thursday. On Friday, Eurostat is scheduled to release an index for the 19-nation eurozone.

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