Annual inflation in the euro area is up, and out of negative territory in October, but it still comes in at a big fat zero, according to the latest release from Eurostat.
Unsurprisingly, energy provides a huge drag. See the chart below from Eurostat.
The fact that the currency bloc is no longer in deflation takes a bit of the pressure off the European Central Bank to beef up its easing measures. But only a bit. The lack of a reaction in the euro to the news shows that traders and investors still think it’s close to a done deal. (The euro is now at $1.10.)