Posted 10/31/2023, 10:00:01 AM
Euro Zone Inflation Falls to 2-Year Low as Energy Prices Drop and ECB Rates Curb Demand
- Euro zone inflation dropped to 2.9% in October, the lowest level in over two years
- Energy prices fell and high ECB interest rates dampened demand, contributing to lower inflation
- Data likely confirms ECB is done raising rates to fight high inflation
- Inflation started falling due to lower year-over-year energy price increases
- Core inflation excluding energy and food also declined to 4.2%, supporting ECB's view that underlying trend is slowing