Eurozone inflation back up to target

Eurozone inflation back up to target

In October, Eurozone inflation rose to 2%, hitting the European Central Bank's (ECB) target and raising the likelihood of a smaller, quarter-point interest rate cut in December. This rise exceeded analysts' expectations of 1.9% and came after a 1.7% figure in September, which was the first time inflation had fallen below the ECB's target in over three years. With core inflation (food and energy stripped out) steady at 2.7% and high services inflation at 3.9%, there is a cautious outlook for ECB policy.