Consumer prices in Germany fell in October, leaving annual inflation in Europe's largest economy at less than a third of that reported in Ireland Preliminary figures from the Federal Statistics Office said inflation eased 0.1pc in October from September and was up 1.2pc year-on-year. The estimate, which is based on figures from six federal states, compared to forecasts for an unchanged monthly reading and a 1.2pc annual increase
In September, the average inflation rate across the 12 nations in the eurozone was 2.1pc, with Ireland posting the highest rate, at 4.5pc The news had little effect on the foreign exchange market, where the dollar remained in favour following last night's doveish Beige Book, which analysts said has raised the likelihood of a rate cut by the Federal Reserve. The Bank of England may also be close to lowering rates after the minutes of its most recent meeting revealed that three its policymakers wanted to cut rates this month, including the usually hawkish Stephen Nickell
With little sign from the ECB that it too is heading for a rate reduction, the euro remained under pressure, down quarter of a per cent on the dollar this afternoon //www.fxcentre.com