Eurozone flash HICP grows faster by 4% YoY in October, as expected
Eurozone’s preliminary Harmonized Index of Consumer Prices (HICP) data for October arrives at 4% Year-on-Year (YoY), as expected, higher than September’s final reading of 3.8%. On a monthly basis, inflationary pressures grew at a moderate pace of 0.4% against the prior release of 0.6%.
Eurozone inflation surged at a faster rate to 4% year-over-year in October, as anticipated, marking an increase from September's final figure of 3.8%. Monthly inflation showed a moderate uptick of 0.4% compared to September's 0.6%. Core HICP, which excludes food, energy, alcohol, and tobacco, matched estimates and the previous reading of 2.5%.
Month-on-month, core HICP climbed at a faster clip of 0.3% versus 0.2% in the preceding month. The Euro (EUR) showed no immediate reaction following the Eurozone HICP release, with EUR/USD trading 0.6% higher to around 1.1260 due to the US Dollar's weakness. HICP gauges price changes for a basket of goods and services in the European Monetary Union.
Released by Eurostat monthly, it is harmonized using a consistent methodology across all member states. A high YoY reading is generally bullish for the Euro (EUR), while a low reading is bearish. Sagar Dua, with a background in financial markets, discussed the impact of the HICP data on the EUR. AUD/USD remained steady above a two-week low, near 0.6965, as midterm election results heighten political uncertainty and pressure on the USD.
USD/JPY dropped below 158.00 amid political uncertainty, boosting safe-haven demand and weighing on the Greenback. Gold rose near the $4,000 psychological level as the USD weakened.
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