Inflation in the eurozone reached its lowest level in 27 months in October

Eurozone consumer inflation remained below expectations in October. Annual inflation in the region fell to 2.9 percent in October, hitting its lowest point in 27 months.

The decrease in demand along with the decrease in energy prices and the increase in interest rates were effective in decreasing inflation.

Inflation in the region was 4.3 percent in September. In the Bloomberg survey, economists’ average expectation for October was 3.1 percent.

Monthly inflation in October was 0.1 percent, compared to the expectation of 0.3 percent.

Core inflation, which excludes energy and food prices, also fell to 4.2 percent, the lowest level in the 15 months to July 2022. In September, this rate was 4.5 percent .

Services inflation, which was 4.7 percent in September, decreased to 4.6 percent in October.

The fact that inflation remained below expectations reduced the possibility of a further increase in interest rates by the European Central Bank (ECB). The ECB plans to reach its official inflation target of 2 percent by 2025.