Eurozone inflation is running at its lowest rate in more than three years. Consumer price inflation fell to an annual rate of 1.1% in September from 1.3% in August according to Europe's statistics agency Eurostat. A fall in energy prices helped to ease inflation. Price rises in food, alcohol and tobacco moderated, also helping. Economists say slowing inflation gives the European Central Bank (ECB) more freedom to help the eurozone's weak economic recovery. The ECB targets an annual inflation rate of below, but close to 2%. "The ECB has plenty of scope to loosen monetary policy further," said James Howat, European economist, at Capital Economics in a research note. "At the very least, further action to boost liquidity in the banking sector looks increasingly likely."

Source