Eurozone inflation turned positive in October, thanks to a slower pace of decline in energy prices, latest data revealed Monday.
Consumer prices edged up 0.1 percent from a year ago, reversing a 0.1 percent fall in September, final data from Eurostat showed. The statistical office initially estimated nil growth for October.
Headline inflation remains well below the European Central Bank’s target of ‘below, but close to 2 percent’. ECB President Mario Draghi last week said the return of inflation is likely to take more time than expected earlier.
Draghi also reiterated that the bank is set to review its stimulus measures in December. He strongly hinted that the bank may boost its stimulus at the meeting on December 3.
The bank has launched its EUR 1.1 trillion asset purchase programme in March. It is set to run until September 2016.
The ECB will undoubtedly continue to fret over the downside risks that could prevent inflation reach its medium-target target of close to but just below 2 percent, IHS Global Insight Economist Howard Archer said.
The economist said the central bank may well see the downside risks to Eurozone growth and inflation being magnified by Friday’s terrorist attacks in France that could have some negative near-term impact on economic activity.
ECB Vice President Vitor Constancio said on Monday that the terrorist attacks in Paris late last week complicates the problems faced by the euro area and subsequent events will determine how the event affects the 19-nation economy.
Core inflation that excludes energy, food, alcohol and tobacco, rose to a 1.1 percent from 0.9 percent. The October rate was revised up from 1 percent.
Prices of food, alcohol and tobacco climbed 1.6 percent and non-energy industrial goods prices gained 0.6 percent. The cost of services rose 1.3 percent, while energy prices declined 8.5 percent.
On a monthly basis, consumer prices edged up 0.1 percent in October.
The material has been provided by InstaForex Company – www.instaforex.com