preliminary number and down from 3.6% y/y in September. Prices were unchanged over the month. The deceleration in the headline rate was mainly due to lower energy prices and positive base effects, with annual food price inflation slowing to 4.7% y/y from 5.7% y/y and energy prices falling 2.9% m/m. Core inflation excluding the most volatile items, remained steady at 1.9% y/y. Inflation is coming down faster than initially hoped for as energy prices decline rapidly. This will create more room for the ECB to maneuver, even though the headline rate remains above the ECB's upper limit for price stability and there are still some risks from wage demands.