Business activity in the euro zone expanded at its fastest rate of the year in October. That came even as firms raised prices at the sharpest rate in more than five years.

The IHS Markit's euro zone flash composite Purchasing Managers' Index increased to 53.7 this month from 52.6 in September. October's reading was the highest since last December and beat market forecasts.

At the same time, Germany's PMI jumped to 55.1 in October from 52.8 in September. France's PMI dipped to 52.2 in October down from 52.7 in September.