Estonia leads the eurozone inflation estimates with a 22.4% estimate for October, closely followed by Lithuania (22%) and Latvia (21.8%). Finland, Estonia's neighbor to the north, recorded 8.3% estimate.
High inflation in Baltic states is largely caused by their particular vulnerability to fluctuations in energy markets. According to Eurostat, the price of natural gas for household consumers soared by 154% and 110% in Estonia and Lithuania respectively between the first half of 2021 and the first six months of this year.
Average inflation in the eurozone is expected to have reached a new record high of 10.7% in October.
The increase was fueled by energy prices which Eurostat estimates were 41.9% higher than in the same month last year. Prices for food, alcohol and tobacco are meanwhile estimated to have risen by 13.1% year-on-year. Inflation was at 9.9% in September.
Meanwhile, France retained its position as the least impacted country although annual inflation for October is seen at 7.1%. Italy, whose annual rate is forecast at 12.8%, has recorded the highest month-of-month increase with a 4% jump.
The European Central bank, whose mandate is to keep inflation in the euro zone close to 2%, broke with more than a decade of negative interest rates over the summer in a bid to curtail price increases and last week announced the third hike of its interest rates.
The eurozone's economy is believed to have grown in the third quarter, but with just a 0.2% increase from the previous quarter, according to preliminary figures from Eurostat, also released on Monday.
In the second quarter, the 19-country area had expanded by 0.8%.
https://ec.europa.eu/eurostat/...
