European stock markets slump

European stock markets tumbled into the red on Friday as eurozone inflation rocketed to its highest level since July 2008.

In London, the FTSE 100 (^FTSE) fell 0.3% by afternoon trading, while the French CAC (^FCHI) also tumbled 0.3% and the DAX (^GDAXI) was 0.6% lower in Germany.

Inflation in the bloc soared past analysts’ expectations to 4.1% this month, up from 3.4% in September according to Eurostat data. This was also well ahead of forecasts of 3.7%.

It was driven by rising energy costs, tax increases, and growing price pressures as a result of the ongoing supply chain crisis.

It came as the eurozone economy grew at its fastest pace in a year between July and September, as COVID-19 restrictions were eased across the region.

According to Eurostat, eurozone GDP increased by 2.2% quarter-on-quarter, representing a 3.7% year-on-year increase. Standout performers were Austria and France, with the latter delivering a surprise 3% growth in the third quarter, and beating expectations due to a rise in consumer spending and exports.