Preliminary data for October reveals that inflation in the Euro Zone has dropped to a two-year low of 2.9%, down from the previous month’s 4.3% and below the 3.1% consensus estimate from a Reuters poll of economists.

Core inflation, which excludes volatile food and energy prices, fell from 4.5% in September to 4.2% year-on-year in October, as reported by the European Union statistics agency, Eurostat.

Flash estimates for the third quarter also show that the Euro Zone’s economy contracted by 0.1%, falling short of consensus predictions that GDP would remain unchanged from the previous quarter. The European Central Bank (ECB) anticipates a meager 0.7% growth for the Euro Zone this year, with projections of 1% in 2024 and 1.5% in 2025.