Eurozone inflation up 0.4% last month

Inflation in the eurozone edged up slightly in October, reinforcing the view that the ECB will hold fire on any additional policy action at its meeting next week.

A first estimate from the EU’s statistics office yesterday showed consumer prices in the eurozone rose by 0.4% in October, in line with market expectations. A day earlier, German data showed inflation in Europe’s largest economy slowing in October to 0.7%, its lowest reading since May.

Nick Kounis, head of macro research at ABN AMRO, said a number of factors meant ECB action as early as next week was unlikely, but that he expected further measures by the first quarter of next year.