European Central Bank still expected to expand stimulus despite inflation uptick

BRUSSELS – Official figures show that inflation in the 19-country eurozone was 0.1 per cent in the year to October, slightly higher than the initial estimate of no change.

The upward revision Monday from Eurostat, the EU’s statistics agency, came amid higher food inflation and a smaller drop in energy prices than previously calculated.

Inflation is still way below the European Central Bank’s target to keep price rises just below 2 per cent. As a result, the bank is widely expected to announce further stimulus measures at its December policy meeting.

Analysts say that the attacks in Paris could weigh on inflation if it leads to a near-term impact on economic activity across the eurozone.