Eurozone GDP rose 0.3 per cent between the second and third quarters of the year, figures published today showed – as inflation hit its highest since June 2014.
A flash estimate by Eurostat showed GDP in the Eurozone rose 1.6 per cent compared with the third quarter of 2015. Meanwhile, consumer price inflation in the Eurozone rose to 0.5 per cent in October, a 28 month high.
In the 28 countries making up the European Union, which includes the United Kingdom, growth was marginally higher, at 0.4 per cent quarter-on-quarter, or 1.8 per cent year-on-year.
Inflation remained well below the European Central Bank's two per cent target, but analyst Howard Archer said the rise was likely to be "relatively well received" by the central bank.
"However, this is primarily due to another marked narrowing in the year-on-year drop in energy prices," he added.
"The muted September core inflation data highlight that the ECB is not out of the inflation woods yet, even if the headline rate is currently trending up and looks likely to continue to do so."
The news caused the euro to edge down against the pound, falling 0.1 per cent to £0.89943. It barely reacted against the dollar, but stayed 0.26 per cent down, at $1.0956.