Eurozone creeps out of negative inflation as consumer price index inches up to zero in October

Jessica Morris
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Energy prices weighed on inflation (Source: Getty)

The Eurozone crept out of negative inflation this month, although it remains way below the European Central Bank's target of just under two per cent.

Year-on-year CPI growth was flat, having fallen 0.1 per cent in September, according to a flash estimate by Eurostat out today.

European Central Bank boss Mario Draghi has said the emerging market slowdown and financial market turbulence pose downside risks to the outlook for Eurozone growth and inflation. And earlier this month, Draghi dropped his heaviest hint yet that another round of monetary stimulus could be on its way in December.

Read more: European Central Bank to re-examine monetary stimulus in December

Core inflation - which strips out more volatile measures such as food and energy - came in at one per cent.

Food, alcohol and tobacco prices swelled 1.5 per cent, while services increased 1.3 per cent, and non-energy industrial goods rose 0.4 per cent.

Energy prices fell 8.7 per cent.

Separate data released today showed the Eurozone's unemployment rate fell from 10.9 per cent to 10.8 per cent in the month to September.

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