Euro-Zone Consumer Prices Weaken For Fifth Month in October

The Euro-Zone Consumer Price Index slid 0.1% in October from a year earlier after tumbling 0.3% in the previous month as household’s scaled back on spending amid rising unemployment, while price pressures increased 0.2% during the month, led by a 0.3% rise in energy costs. At the same time, core rate of inflation held steady at 1.2% amid expectations for a drop to 1.1%, and price pressures are likely to remain subdued going into the following year as policy makers continue to see a risk for a protracted recovery. As a result, the European Central Bank is likely to keep interest rates at the record low of 1.00% until the following year as Governing Council maintains its one and only mandate to ensure price stability within the region.

Euro-Zone CPI Monthly Chart