Eurozone Inflation Rises To 2% As Estimated

(RTTNews) - Eurozone inflation returned to the 2 percent target in October, final data from Eurostat showed on Tuesday.

The harmonized index of consumer prices climbed as initially estimated in October after rising 1.7 percent in September.

Core inflation that excludes prices of energy, food, alcohol and tobacco, remained unchanged at 2.7 percent in October, in line with the flash estimate published on October 31.

At the October meeting, the European Central Bank had cut its key interest rates by 25 basis points as policymakers assessed that the disinflation process is on track. The bank had reduced rates by the same volume in September.

The main driver of overall inflation was services cost, which advanced 4.0 percent annually in October, slightly faster than the 3.9 percent rise in September.

Food, alcohol and tobacco prices gained 2.9 percent and non-energy industrial goods prices moved up 0.5 percent. Meanwhile, energy prices declined 4.6 percent, but slower than the 6.1 percent fall seen in September.

Eurostat confirmed monthly HICP inflation at 0.3 percent. Core consumer prices grew 0.2 percent on month.

EU inflation increased to 2.3 percent in October from 2.1 percent in the previous month. A year earlier, inflation stood at 3.6 percent.