Inflation

Eurozone inflation drops to 2-year low as economy contracts

Consumer prices rose 2.9 per cent in October, down from the previous month’s 4.3 per cent

ECB President Christine Lagarde says the Eurozone economy will remain weak for the rest of the year.

Euro-area inflation decreased to its lowest level in more than two years as the bloc’s economy shrank following an unprecedented increase in interest rates.

Consumer prices rose 2.9 per cent in October, down from the previous month’s 4.3 per cent. In a separate release, Eurostat said third-quarter gross domestic product fell 0.1 per cent — missing estimates for stagnation.

The data show that while the European Central Bank’s 10 back-to-back rate hikes are helping to ...