Euro zone inflation rises to 2% bolstering case for caution in rate cuts

Inflation has fallen quickly since hitting double digit territory two years ago and most economists see it back at the European Central Bank's 2% target basis sometime in the first half of next year

Such a dim outlook could even force the ECB to accelerate the pace of rate cuts and bolster the case for a bigger than usual step in December, some said.

Euro zone inflation accelerated more than expected in October and could still pick up further in the coming months, bolstering the case for caution in European Central Bank (ECB) interest rate cuts as price growth is not yet fully tamed.

Inflation in the 20 countries sharing the euro currency accelerated to 2.0% from 1.7% in September mostly on higher food and energy costs, coming above expectations for 1.9% in a Reuters poll of economists.