Brussels, October 31 (QNA) – Data released Friday by Eurostat, the European Union's statistical office, showed that the annual inflation rate in the Eurozone slowed to 2.1 percent in October, compared to 2.2 percent in September, remaining close to the European Central Bank's medium-term target of 2 percent.

Core inflation, which excludes fluctuations in energy and food prices, remained stable at 2.4 percent, with continued price pressures in the services sector, whose index rose to 3.4 percent from 3.2 percent in the previous month. Meanwhile, prices for non-energy industrial goods slowed to 0.6 percent, and energy prices fell by 1.0 percent.

This annual slowdown followed a peak in inflation of 10.6 percent in October 2022, driven by rising energy prices following Russia's war in Ukraine. Annual inflation fell below 2 percent in June, achieving the bank's target of controlling price increases.

At its most recent meeting last Thursday, the European Central Bank (ECB) kept its main interest rate unchanged at 2 percent, emphasizing that monetary policy would adjust as needed.

ECB President Christine Lagarde noted the continued uncertainty surrounding medium-term inflation expectations due to global trade volatility, which could disrupt supply chains, slow exports, and weigh on consumption and investment.

Among member states, Estonia recorded the highest annual inflation rate at 4.5 percent, followed by Latvia at 4.2 percent, and Austria and Croatia at 4 percent each. Cyprus had the lowest rate at 0.3 percent, while prices in France rose by 0.9 percent. (QNA)