Mark Preskett, portfolio manager with Morningstar, added: “The rate is in line with what analysts expected. It’s still way below the ECB’s target of close to 2%.
“Energy is having a big effect on the numbers. However, all of the component parts of inflation, restaurants, cafes, are all well below target. You can see that when you take them out and look at the core inflation rate.”
The increase in inflation comes one day after the euro dropped to a 14-year low against the dollar, trading at $1.04 it was the lowest level since 2003.
In a statement, Eurostat said: “Negative annual rates were observed in six member states. The lowest annual rates were registered in Bulgaria and Cyprus (both -0.8%).
“The highest annual rates were recorded in Belgium (1.7%), the Czech Republic (1.6%) and Austria (1.5%). Compared with October 2016, annual inflation fell in five Member States, remained stable in six and rose in seventeen.”
