Inflation in the 20-nation euro zone rose to 2% in October, preliminary figures released by statistics agency Eurostat showed Thursday.
The fresh Thursday inflation print is seen as crucial in judging whether the European Central Bank could consider implementing a jumbo half-percentage-point cut in interest rates at its next meeting in December.
The central bank has so far trimmed rates three times this year, making quarter-point increments that altogether took the central bank's key rate from 4% to 3.25%.
Traders are also considering the latest growth figures for the euro area, which showed better-than-expected 0.4% expansion in the third quarter, even as analysts predicted further weakness ahead.
The ECB said during its October meeting that sluggishness in the euro zone's economic activity had added to its confidence that inflation will not resurge dramatically.
Organizations:
Reuters, European Central Bank, Traders, ECB
Locations:
Bonn, Germany