Germany, France, Italy and Spain: Where was inflation highest in October?

The eurozone’s four largest economies published fresh inflation data on Friday, offering an early read on what is shaping up to be another hot month for price pressures across Europe. The October's inflation ranking was clear. Italy came out on top, with prices rising 5.

4% from a year earlier. Spain followed at 4. 9%, France at 3.

4% and Germany at 2. 8%. The more telling story, however, is the direction.

Inflation accelerated sharply in Italy and France, held steady in Spain and fell in Germany, even though all four major economies are dealing with the same surge in energy costs. So, why are the same pressures producing such different bills, and what does it mean for the European Central Bank? Italy: Why did prices jump the most?

Italian inflation rose to 5. 4% in October from 4. 2% in September, according to preliminary figures from national statistics office Istat.

That brings it back to its August 2023 level, and well above the 4. 6% economists had expected. Under the harmonised measure used to compare countries across the EU, Italian inflation reached 5.

6%. Energy did most of the damage. Istat said energy prices were 31.

4% higher than a year earlier, up from 22. 6%, still shaped by the international geopolitical backdrop. Regulated energy, the tariffs that are not set freely by the market, rose 59.

5% year on year, more than double the previous month’s rate. Prices in this category climbed 18. 8% in October alone.

The pressure is also reaching supermarket shelves. The so-called "shopping trolley," a basket of food, household and personal care products Italians buy most often, rose 2. 5%, up from 1.

5%. Unprocessed food prices accelerated to 7. 5%, and transport services to 3.

1%. Core inflation, which strips out energy and fresh food to show underlying price trends, rose to 2% from 1. 6%.

For Italian households, the timing is difficult. Istat also reported on Friday that the economy did not grow in the third quarter. Melanie Debono, senior Europe economist at Pantheon Macroeconomics, wrote in a note that the breakdown due next month is likely to show the energy shock weighed more heavily on consumer spending than monthly retail figures had suggested.