Euro area inflation falls to lowest level in two years as GDP shrinks

Flash estimates from Eurostat

Euro area annual inflation fell to the lowest level since July 2021 in October, while the continent's GDP contracted 0.1% in the third quarter.

A flash estimate from Eurostat, the statistical office of the European Union, put annualised euro area inflation at 2.9% in October, down from 4.3% in September. Lower energy prices helped drag down the reading, falling at an annualised rate of 11.1% in October, compared with a fall of 4.6% in September. Food, alcohol and tobacco were expected to have contributed most to the inflation in October, at 7.5%, compared with 8.8% the previous month. ECB meets expectations as rates held at 4% This was followed by services, which saw annualised prices rise by 4.6%, compared with 4.7% in...