Inflation in the eurozone continued to weaken in October. According to the statistics office Eurostat, consumer prices were 0.7 percent above the level of the same month last year. This is the lowest increase since November 2016, ie just under three years ago. Analysts had expected this development on average. Household prices rose by 0.2 percent month-on-month.
Decisive for the lower price pressure was energy, which was 3.2 percent cheaper than a year before. In addition, prices for industrial goods hardly rose. Prices for services and food increased significantly more. Core inflation excluding energy and food stocks was 1.1 percent, 0.1 percentage points more than in September.
The European Central Bank (ECB) aims for medium-term inflation of just under two percent. However, this value has not been reached for a long time. The ECB responded with a drastic easing of its monetary policy. Most recently, monetary policy eased considerably in September.
Germany with lowest unemployment within the eurozone
Meanwhile, the unemployment rate in the eurozone remains low. She remained at 7.5 percent, as in the previous month. "This is the lowest rate recorded in the euro area since July 2008," Eurostat said.
However, the labor market situation remains very different in the individual Member States. Germany has the lowest unemployment rate in the euro area and highest in Greece and Spain, although it has fallen significantly in recent years.
The financial markets showed little reaction to data from the eurozone.