Euro area: Core inflation risks rising – Commerzbank

Commerzbank’s Dr. Vincent Stamer notes that Euro area headline inflation rose to 4.0% in October, its highest level in three years, with the core rate steady at 2.5%. The report highlights broad-based price increases beyond energy and expects higher energy costs to be passed through, pushing core inflation towards or above 3% and potentially forcing an ECB rate hike next year.