Eurozone CPI falls flat in October

Consumer prices in the Eurozone were flat in October, preliminary figures released on Friday showed.

According to the Eurozone statistical office, consumer prices fell flat in the current month, in line with analysts’ expectations and up from the 0.1% decline registered in September.

On a core basis, which excludes volatile items such as energy and food, consumer prices rose 1% year-on-year, compared with a 0.9% gain in the previous month and with forecast for an unchanged reading.

“Mario Draghi has raised the possibility of injecting further stimulus, or even cutting interest rates, to try to boost growth in the Eurozone. Despite the obvious pressures, there are a few glimmers of hope,” said Dennis de Jong, managing director at UFX.com.

“Yesterday’s unexpected rise in business confidence was a fillip for the ECB, although it’s not going to give inflation any significant boost in the short-term.

“Draghi will be pleased to see that the figure has bounced back to zero, but few would dare to describe this as a recovery yet. It would still only take a small gust of wind to blow the whole pack of cards down.”