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Investing.com - Consumer price inflation in the eurozone slipped marginally on an annual basis in October, confirming the earlier flash estimate, suggesting the European Central Bank will keep interest rates on hold at its next meeting in December.
The consumer price index (CPI) rose by 2.1% annually last month, a drop from 2.2% in September, and in line with expectations.
Month-on-month, the reading gained 0.2% last month after posting a rise of 0.1% in September.
Stripping out more volatile items like food and fuel, the "core" number remained at 2.4% in the twelve months to October.
The European Central Bank held its key rate steady at 2% late last month, with CPI hovering around its 2% target and likely remaining near this level over the coming years.
Risks surrounding the eurozone inflation outlook are balanced and the current level of interest rates is appropriate, Dutch central bank chief Olaf Sleijpen told a news conference on Monday.
The ECB has left interest rates unchanged since June and markets expect no change even in December, when the ECB releases a fresh set of economic projections, which could show price growth going under the bank’s 2% target next year.
"Inflation risks in the euro area are balanced," Sleijpen, one of the newest members of the ECB’s rate-setting Governing Council, said.
"Our December meeting will bring a lot of new data," Sleijpen added. "For now, I would say we are in a good place and if data remains consistent with the current picture in December I would see no reason to say we are no longer in a good place."