Prices held steady in October as inflation slowed further

in the eurozone

Prices in the eurozone remained stable in October according to a report released by the European Central Bank on Friday, as inflation continued to remain low in the currency bloc.

The Harmonised Index of Consumer Prices (HICP) was unchanged at 0.7 percent year-on-year for the third consecutive month in October, unchanged from September’s reading, as energy prices slowed the overall inflation rate.

On a month-on-month basis, prices rose by 0.3 percent in October, in line with economists’ expectations, after increasing by 0.1 percent in September.

The report also showed that core inflation, which strips out volatile elements such as food and energy, increased to 0.8 percent year-on-year in October, up from 0.7 percent in the previous month.

The ECB is aiming for an inflation rate of close to, but just below, 2 percent to ensure healthy economic growth and tried to reach its target with a massive monetary stimulus program, which includes an experimental scheme of purchasing corporate bonds.

The bank believes low inflation is a serious threat to the eurozone economy and policy makers are likely to maintain their dovish stance at their upcoming policy meeting in December.