Euro zone consumer prices rose by an estimated 2.4 per cent in October from a year earlier, according to preliminary data released today by Eurostat, the European Union's statistical agency.
The reported decline from September's 2.5 per cent, in line with the expectations of economists, will add to the case for the ECB to cut interest rates, possibly as soon as its meeting on Thursday.
Inflation has been falling from May's eight-year high of 3.4 per cent and is back to where it was in January, but is still above the ECB's self-imposed two per cent ceiling.
Monday's data comes after International Monetary Fund managing director Mr Horst Koehler was quoted at the weekend as saying he was convinced the ECB would use room for manoeuvre to cut rates and that the danger was one of recession rather than of inflation.
Economists are expecting the ECB to cut interest rates on Thursday. However, Bundesbank president Mr Ernst Welteke said in media interviews on Saturday that the ECB had already cut rates considerably and would take its next decisions independently of political pressures.