Eurozone inflation falls further below target

Staff Writer
Columbus CEO

BRUSSELS (AP) — Official figures show that inflation across the 17 European Union countries that use the euro has fallen further below target, news that could encourage the European Central Bank to cut interest rates again if the recovery across the eurozone stalls.

Eurostat, the EU's statistics office, says Monday that consumer prices were up 1.1 percent in the year to September. That's down on the previous month's 1.3 percent annual rate. The consensus in the markets was for a more modest decline to 1.2 percent.

The ECB is tasked with setting monetary policy to keep inflation at just below 2 percent. The ECB holds its monthly meeting on Thursday but is not expected to change its policies amid signs that the eurozone economy is recovering.