Annual inflation across the euro area saw a slight deceleration in October 2025, according to preliminary figures based on the Harmonised Index of Consumer Prices (HICP) from Eurostat. The headline rate for the currency bloc eased to 2.1%, down from 2.2% recorded in September. In contrast, Cyprus experienced a minor acceleration in its domestic inflation rate, moving from 0.0% in September to 0.3% in October.
Inflation Drivers Across the Euro Area
The data reveals that the primary upward pressure on prices continues to originate from the services sector, which recorded the highest annual inflation rate for the euro area at 3.4% in October, up from 3.2% the month prior.
- Food, Alcohol, & Tobacco collectively maintained strong inflationary pressure, measuring 2.5%.
- Unprocessed food saw inflation reach 3.2%.
- Processed food, alcohol, and tobacco inflation stood at 2.4%.
- Non-Energy Industrial Goods inflation remained modest at 0.6%.
- Energy continued to act as a dampener on the overall rate, remaining in negative territory at -1.0% annual inflation.
Member State Variations
Inflation rates varied significantly across the euro area, highlighting the differential impact of price pressures across member economies:
While larger economies like Greece and Germany saw minor retreats in their inflation, Cyprus’s rate ticked up, reflecting a small increase in consumer price levels compared to the zero inflation rate observed in September.
The final, comprehensive HICP data for October 2025 is scheduled for release on November 19, 2025.
Source: Stockwatch.com.cy