Eurozone Inflation Hits A Two-Year High

Consumer price inflation for the Eurozone was up 1.9% year-over-year in October, accelerating from 1.8% in September, and to a two-year high according to the Wall Street Journal.

Eurostat:

The main components with the highest annual rates in October 2010 were transport (4.3%), alcohol & tobacco (3.4%) and housing (3.2%), while the lowest annual rates were observed for communications (-1.1%), recreation & culture (0.1%) and clothing (0.4%).

In contrast, U.S. producer price inflation data comes out today at 8:30 AM, and is expected to be just 0.8% higher according to Finviz, with core PPI expected to be almost flat at +0.1%.

Latest Eurozone inflation data makes one wonder if U.S. inflation fears have been misplaced. The euro has the worse inflation problem.

2-16112010-AP-EN

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