Inflation down in October

The EU statistical office Eurostat has reported a decline in the annual inflation rate in the euro zone from 4.3 per cent in September to 2.9 per cent in October. Although analysts had expected a fall, a slightly higher rate was expected on average.

One factor regarded as particularly positive by economists is that the core rate of inflation, i.e. inflation not taking sharply varying prices such as for food and energy into account, has fallen more sharply than expected.