MNI BRIEF: No Respite For ECB As EZ Inflation Hits Fresh High

Eurozone inflation surged to a fresh multi-decade high in October, surging to 1.5% m/m and 10.7% year-on-year, a flash estimate from Eurostat released Monday showed, underlining the ongoing fight for the European Central Bank in containing prices.

Core inflation was also higher, rising to 0.6% m/m and 5.0% y/y, as price pressures broaden through the economy.

Last week, the ECB hiked the benchmark deposit rate by 75 bps to 1.50%, taking combined hikes since July to 200 bps. Markets are pricing at least another 50 bps at the December meeting. (MNI ECB WATCH: ECB Hikes 75bp, Changes TLTRO Terms)

Inflation expectations are also edging higher. In the latest Survey of Professional Forecasters, published Friday, rates were now seen averaging 2.4% over the medium-term horizon (currently 2024 in the ECB's framework), up from 2.1% in the July survey.