Euro-zone inflation sinks to 2-year low as economy contracts

Euro-area inflation eased to its lowest level in more than two years as the bloc’s economy shrank following an unprecedented ramp-up in interest rates, Bloomberg said, Report informs.

Consumer prices rose 2.9% in October — down from the previous month’s 4.3% and better than the 3.1% median estimate in a Bloomberg survey analysts. In a separate release, Eurostat said third-quarter gross domestic product fell 0.1% — missing estimates for stagnation.

Tuesday’s data show that while the European Central Bank’s 10 back-to-back rate hikes are helping to bring inflation back toward the 2% goal, they’re also taking a toll on households and firms by sending loan costs sharply higher.