Eurozone Inflation Slows to 2.1% as ECB Maintains Rates

Eurozone inflation slightly eased to 2.1% in October from 2.2% in September, aligning with expectations and supporting the European Central Bank's view that inflation is moving closer to its 2% target. This slowdown was driven mainly by falling energy prices and slower increases in food and industrial goods prices. However, core inflation, which excludes volatile items like food and energy, held steady at 2.4%, slightly above forecasts, due to persistent price pressures in the services sector, which saw inflation rise to 3.4%. The ECB maintained interest rates steady in October, reflecting confidence in the inflation outlook and the economy's relatively benign path, though some policymakers remain cautious about risks of inflation falling too low early next year. Inflation rates varied across eurozone countries, with Estonia reporting the highest and Cyprus the lowest. Overall, the data reinforce the ECB's strategy to keep borrowing costs unchanged while monitoring underlying inflation dynamics.