BBC: Euro inflation continues to cool

[blackhorse]

Euro inflation continues to cool

Lower oil costs helped push headline eurozone inflation down to 1.6% in October, official data shows.

Annual inflation for the 12 nations using the euro fell from 1.7% in September, the EU Eurostat agency said.

The European Central Bank (ECB) has set a 2% inflation comfort zone and raised benchmark interest rates to 3.25% this month to tackle rising consumer prices.

But there are worries that lower oil costs will free consumer spending power, and that prices could then rise.

http://news.bbc.co.uk/2/hi/business/6102006.stm