Euro zone inflation was lower than expected in September according to the latest figures from Eurostat, the European Union's statistics office.
The annual inflation rate dropped to the lowest level since March 2004 in September, falling to 1.7 per cent from 2.3 per cent in August. This was below Eurostat's initial estimate and market expectations of a 1.8 per cent annual increase.
It also fits the European Central Bank's (ECB) inflation target of below, but close to 2 per cent.
The inflation fall came thanks to slower energy price growth and an increase in industrial output in August.
The lower inflation is unlikely to change the ECB's resolve to raise interest rates again in December to 3.5 per cent from the current rate of 3.25 per cent.
The bank has said short-term inflation rate swings are to be expected while medium-term risks remain on the upside.