Official figures show that inflation in the euro zone accelerated to the fastest since late 2014 in September,.
The European Union’s statistics office said consumer prices rose an annual 0.4 percent, in line with economists' forecasts and up from 0.2 per cent in August. Core inflation – which excludes some volatile items such as energy – stood at 0.8 per cent, the same as in August.
While inflation in the euro area is slowly ticking higher, it remains far below the European Central Bank’s goal of close to 2 per cent and President Mario Draghi has pledged to keep up efforts to boost price growth. With interest rates at a record low and the ECB buying €80 billion a month of debt, Draghi this week renewed his plea to governments to use monetary stimulus as an opportunity to deliver structural reforms and help create a sustainable recovery.
Economists believe inflation will climb towards the ECB target over the coming months as the effect of sharply falling oil prices fades.
Energy prices fell an annual 3 per cent in September, compared with a 5.6 per cent decline in August.
Separate Eurostat figures showed that unemployment in the euro area in August held steady at 10.1 per cent.