Analysts at the Royal Bank of Scotland (RBS) note that the preliminary estimate of euro area inflation for October at 0.7% y/y matched market expectations and remained lower than that of September (0.8% y/y).

• “Core CPI at 1.1% outperformed both expectations and the previous month’s reading of 1.0%. Out of the main components of inflation, a rise in services and consumables was offset by a fall in energy prices. But despite a substantial amount of monetary stimulus headline inflation remains stubbornly lower than the ECB’s target of 2%.”