Eurozone inflation edges up to 0.4%

Inflation in the eurozone rose slightly in October, giving some hope that the spectre of deflation can be staved off.

The flash inflation figure of 0.4% for October was up from 0.3% in September, Eurostat said.

The services sector was the biggest influence on the rise, showing an increase of 1.2% compared with a 1.1% rise in September.

Eurostat also said that the eurozone's unemployment rate remained unchanged at 11.5% in September.

'Crumb of comfort'

The European Central Bank's (ECB) inflation target is close to, but below 2%. However, the decline in the inflation rate, together with sluggish growth, has put the bank under pressure to step up its stimulus measures.

The ECB has already cut its benchmark interest rate to 0.05% and started an asset purchase programme.

Howard Archer, an economist at IHS Global Insight, described the pick-up in inflation as a "small crumb of comfort".

"Nevertheless, October marked the 13th successive month that eurozone consumer price inflation has been less than 1.0% and there is still a significant risk that extended very low inflation could ultimately morph into deflation, especially given weak oil prices and still muted eurozone economic activity."bbc

Kefalonia kai Kosmos

Friday, 31 October 2014