RIYADH: The euro area’s annual inflation is forecast to reach 10.7 percent in October, up from 0.8 percentage points from September thanks to the surge in energy costs, according to a flash estimate from the statistical office of the EU. The Eurostat data showed energy to be the main contributor to the annual price rises this month, reaching 41.9 percent in October compared to 40.7 percent the month before. Food, alcohol and tobacco prices are expected to rise 13.1 percent, compared to 11.8 percent in September; non-energy industrial goods to rise 6 percent compared to 5.5 percent; and services to rise 4.4 percent compared to a 4.3 percent, according to the flash estimate. The flash estimates showed that Estonia will see a fall in prices while maintaining its position of the highest year-on-year inflation in the region. The country’s annual price levels are to drop to 22.4 percent in October from 24.1 percent the month before. Italy is forecasted to witness the largest increase in annual inflation in the region this month, going from 9.4 percent in September to 12.8 percent in October, according to Eurostat data. On the other hand, Greece will demonstrate the lowest drop in price levels, reaching 9.8 percent in October down from 12.1 percent the month before. The estimates indicated that 9 of the 19 countries in the euro area will see an increase in annual inflation, 9 will see a decrease in annual inflation, while Luxemburg will hold its 8.8 percent price level in October.