[BRUSSELS] Annual inflation in the 17-nation eurozone fell sharply to 1.1 per cent in September after a 1.3 per cent drop in August, according to a first estimate on Monday by the Eurostat data agency. A strong drop in energy prices, which decreased 0.9 per cent after 0.3 per cent in August, largely contributed to the new fall in inflation, which a year ago stood at 2.6 per cent. If confirmed, this would be the lowest inflation rate in 43 months. Eurozone inflation had hit a 38-month low of 1.2 per cent in April but then picked up as the economy recovered from a record 18-month recession. In September, prices of food, drink and tobacco products showed the biggest increase of 2.6 per cent against 3.2 per cent in August, followed by services at 1.5 per cent against 1.4 per cent. - AFP

Source