Eurozone Inflation Eases to 2.1% in October; Chicago PMI Surprises With Expansion

Eurozone Inflation Slipped Marginally in October; Annual CPI at 2.1%

Consumer price inflation in the eurozone slipped marginally on an annual basis in October, confirming the European Central Bank’s view that inflation remains contained in the region. The consumer price index (CPI) rose by 2.1% annually last month, a drop from 2.2% in September, and in line with expectations. Month-on-month, the reading gained 0.2% last month after posting a rise of 0.1% in September.

Chicago PMI Shows Unexpected Expansion, Bullish for USD

The latest data on the Chicago Purchasing Managers’ Index (PMI) signals an unexpected growth in the region’s manufacturing sector. The actual PMI number came in at 43.8, surpassing the forecasted figure and indicating an expansion in the sector. Economists had predicted a PMI of 42.3, continuing the contraction trend in the manufacturing sector. However, the actual reading of 43.8 defied these expectations, suggesting an expansion in the sector. This higher than expected reading is considered positive, or bullish, for the US dollar (USD).

Source: HDFC Securities, Prime Weekly, 3 Nov 2025