BRUSSELS, Nov. 15 (UPI) -- The annual inflation rate in the 17-member eurozone dropped to 0.7 percent in October, down from 1.1 percent in September, Eurostat said Friday.
The official statistics office for the European Commission confirmed its flash estimate for the inflation rate for the currency region, which includes annual rates of minus 1.9 percent in Greece, minus 0.5 percent in Cyprus and minus 0.1 percent in Ireland.
The highest rates were posted by Estonia at 2.2 percent and Finland at 1.7 percent,
In the larger European Union, the inflation rate slowed in 23 of member countries, Eurostat said.
Fears of a relapse into recession or a stagnant economy prompted by deflation prompted the European Central Bank last week to drop its key lending rates.
The ECB lowered its main bank-to-bank rate from 0.5 percent to 0.25 percent.
Prices were lowered "given the latest indications of further diminishing underlying price pressures in the euro area over the medium term, starting from currently low annual inflation rates of below 1 percent," ECB President Mario Draghi said. "In keeping with this picture, monetary and, in particular, credit dynamics remain subdued."
The annual inflation rate for the currency region dropped from 2.5 percent in October 2012.
The central bank's target rate for inflation is 2 percent or below -- but not so far below that the economy runs into stagnation or deflation.
