Inflation in the 17 countries that use the euro remained at 3 percent in the year to October, official figures showed Monday, likely reinforcing market expectations that the European Central Bank will keep interest rates on hold at its monthly policy meeting this week.
The rate published by Eurostat, the EU's statistics office, remains above the ECB's target of keeping price rises just below 2 percent. It was also higher than anticipated — most economists thought it would moderate to 2.9 percent.
The news comes on Jean-Claude Trichet's last day as president of the ECB. He is to be replaced Tuesday by Italian Mario Draghi.
Though no breakdown on the figures was available, most analysts think that higher energy and food costs will again have been the main factor behind the above-target rate. Both are expected to ease in coming months and that should start getting inflation lower.
On Thursday, the ECB is expected to keep its main interest rate at 1.5 percent even though economic growth is faltering in many of Europe's top economies, such as Germany and France, and contracting in weaker countries like Greece and Portugal.
"While Draghi might be reluctant to cut interest rates at his first meeting, he should at least signal a December cut," said Jennifer McKeown, senior European economist at Capital Economics.
Separate figures from the statistics office also revealed that unemployment in the eurozone was 10.2 percent in September, up 0.1 percentage point from the previous month. The rise came after a 188,000 increase in the number of jobless, the biggest rise for two years.
The unemployment rate in the eurozone is now at its joint equal highest level since the euro was introduced in 1999. It last hit 10.2 percent in June 2010.
Copyright 2011 The Associated Press.