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Eurozone headline inflation increased to 4.0% year-on-year, strengthening the case for the European Central Bank to hike rates again in December According to the just-released flash estimate, eurozone headline inflation came in at 4.0% year-on-year in October, from 3.8% YoY in September, the highest level in three years. Core inflation, however, remained muted and unchanged at 2.5%, signalling limited spillover from higher energy prices to the rest of the economy. Looking ahead, the path of headline inflation remains highly affected by the war in the Middle East and oil prices.
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