From Morningstar: 2024-10-31 07:59:14

Consumer prices in the eurozone rose by 2% year-on-year in October, slightly exceeding expectations and the previous month’s reading of 1.7%. Core inflation, excluding energy and food costs, increased by 2.7% in October. Services, food, alcohol, tobacco, and non-energy industrial goods were key contributors to inflation.

Eurozone business activity declined for the second consecutive month in October, with the HCOB Flash Eurozone Composite PMI Output Index at 49.7. The eurozone economy expanded by 0.4% in Q3 compared to the previous quarter, falling short of expectations. ECB had to revise down its growth projections for 2024 to 0.8%.

Goldman Sachs forecasts a minimum 25bp interest rate cut by the ECB in December, with a possibility of a 50bp cut due to weakening economic data. T. Rowe Price’s Chief European Economist believes a 50bp cut is premature but could happen if U.S. tariff policies post-election create significant economic uncertainty.



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