Italy’s annual inflation rate rose to 5.4% in October from 4.2% in September, according to preliminary Istat data, exceeding economists’ 4.6% forecast. Harmonised inflation reached 5.6%, while consumer prices rose 0.9% month on month and monthly HICP inflation increased 1.2%. Energy prices climbed 31.4% year on year, with regulated tariffs up 59.5%, and inflation also spread to frequently purchased goods, unprocessed food and transport services. Core inflation rose to 2%. Italy’s economy stagnated in the third quarter, contrasting with Spain’s 0.6% expansion, while France’s economy contracted 0.1%. Spanish inflation held at 4.9%, French inflation accelerated to 3.4% and German inflation fell to 2.8% after a temporary fuel-tax cut. The divergent data point to renewed pressure on the European Central Bank, which kept its deposit rate at 2.5% and is weighing whether to raise rates again in December. Eurostat is due to publish its eurozone flash estimate next week, while Christine Lagarde’s planned departure in February could add market volatility during the policy transition.