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Investing.com -- Consumer price inflation in the eurozone slipped marginally on an annual basis in October, confirming the European Central Bank’s view that inflation remains contained in the region.
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% on Thursday, for the third consecutive month, with policymakers indicating that the inflation outlook remains broadly unchanged with price growth hovering around the 2% target and likely remaining near this level over the coming years.
Data released earlier in the session showed that French consumer prices rose slightly less than expected in October, with the country’s harmonised inflation rate, adjusted for comparison with other eurozone countries, growing just 0.9% year-on-year in October, down from 1.1% in September.
Additionally, a key ECB survey, released earlier Friday, suggested that eurozone inflation will remain at or near the European Central Bank’s 2% target in the coming years.
The ECB’s quarterly Survey of Professional Forecasters, a key input into policy deliberations, sees inflation easing to 1.8% next year, then coming back to 2.0% in 2027.
Over the longer term, defined as in 2030, the survey sees inflation at 2.0%, unchanged from the third quarter.
Barclays has now revised its forecast for the European Central Bank’s rate trajectory, expecting it to keep interest rates steady in its December meeting from its earlier view of a quarter point cut.
The British brokerage expects the central bank to hold the interest rates steady through the end of 2026.
"The ECB continues to convey very little, if any, conviction on whether and for how long the current stance will persist," Barclays said in a note on Thursday.