The euro zone Consumer Price Index for September confirmed the unexpected rise reported in the flash estimate where it rose to 3.0% on the year from 2.5% in August in line with the flash estimate.

On the month inflation rallied 0.8% in September after 0.2% gain in August in line with expectations and core annual inflation rose to 1.6% from 1.2% and above the expected 1.5%.

In the October policy meeting the ECB held rates at 1.5% resisting market pressures to reverse the 50 bp increase delivered this year and despite the balanced outlook for inflation threats the Governing Council sees that inflation will remain above the 2.0% target for the coming period and reminded that rates remain low.