Inflation in the euro zone surged in October to the highest level in more than two years with food prices likely to have been a major factor. It was up a much higher than expected 2.6% compared with the same month last year, according to the first estimate from the European Union statistics office, Eurostat.
October's 2.6% is a big rise from the 2.1% in September. Despite higher fuel prices, inflation had remained tame through the summer going down to 1.7% in August.
The European Central Bank's inflation target is for close to but just below 2% and the figures makes it more likely the ECB will raise interest rates, even though that would boost the euro's value against the dollar even further and risk slowing the euro zone economy.
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