Further deflation in Eurozone
Eurozone deflation widened to 0.3 per cent in September, taking core inflation in the single currency area to a nine-year low of 1.1 per cent. Inflation is expected to remain below the ECB’s target of just below two per cent for some time.
Separately, the ECB said the Eurozone is stabilising and expected to recover at a gradual slow pace, but admitted that the uncertainties surrounding the forecast remained high.