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October inflation in the eurozone was 4.1%, according to Reuters

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© Reuters. FILE PHOTO: A skyline photo was taken in the evening of Frankfurt (Germany) on January 26, 2016. REUTERS / Kai Pfaffenbach / File Photo

BRUSSELS (Reuters) – Eurozone inflation reached double the target of the European Central Bank in October, the European Union’s statistical office Eurostat confirmed on Wednesday, more than half of the jump as a result of rising energy prices.

Eurostat said inflation in the 19 countries that share the euro rose by 0.8% month-on-month in October, up 4.1% year-on-year, according to previous Eurostat estimates.

The ECB wants to keep inflation at 2.0% in the medium term, and said the rise in inflation has been temporary. The bank expects price growth to slow in 2022, but has acknowledged that it should be more than initially expected.

Divided by year-on-year totals, more expensive energy added 2.21 points, services 0.86 points, food alcohol and tobacco 0.43 points and non-energy industrial goods 0.55 points, Eurostat said.

Without volatile energy and the price of unprocessed food, a measure that the ECB calls core inflation, prices rose by 0.3% per month, with a year-on-year gain of 2.1%.

An even narrower measure examined by many economists excluding alcohol and tobacco saw prices rise by 0.3% per month, but only by 2.0% per year.

Inflation has already doubled its target and is likely to rise further this year as the ECB is under greater pressure to suspend its ultra-easy monetary policy and deal with rising prices that are eroding the purchasing power of households.

But now a tightening of monetary policy could stifle the post-pandemic economic recovery, ECB President Christine Lagarde said on Monday, pushing back calls for tighter policy and market betting.

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