Eurozone Inflation Slips to 2.1% as ECB Keeps Rates on Hold

Overview

• Eurostat’s flash estimate shows eurozone consumer prices rising 2.1% year on year in October, down from 2.2% in September.
• The ECB left its deposit rate unchanged at 2.0% at its October 30 meeting in Florence and signaled no preset path for policy, with the next decision due December 18.
• Germany’s preliminary October inflation registered 2.3% year on year, while core inflation held elevated at about 2.8%, according to Destatis.
• The ECB’s stance contrasts with the U.S. Federal Reserve, which cut rates earlier in the week, underscoring a transatlantic policy divergence.
• The ECB advanced the digital‑euro project to a technical‑readiness phase, with a potential pilot from 2027 and readiness for a first issuance by 2029, contingent on EU legislation.