Financial Times FT.com

Eurozone inflation hits two-year high

By Ralph Atkins in Frankfurt

Published: October 31 2007 12:18 | Last updated: October 31 2007 18:03

Eurozone inflation lurched sharply higher in October and runs a significant risk of soon hitting 3 per cent, putting pressure on the European Central Bank as growth in the 13-country economy starts to slow.

The risk of soaring oil prices driving inflation high­er while economic growth slides, on Wednesday prompted a warning of possible “stagflation conditions” by Vitor Constancio, the Portuguese central bank governor.

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