ECB rate hike in doubt after inflation jump

European inflation levels edged up 0.5% in September to 3%, Eurostat has confirmed, reducing the possibility of a rate cut.

Eurozone consumer price inflation is now over 1% higher year-on-year, and at a three-year peak, after the EU's statistics office confirmed an earlier forecast. Higher than expected inflation is coming through despite the economic slowdown being seen across the eurozone. and raises doubts as to whether the ECB can actually cut interest rates. The central bank - led by President Jean-Claude Trichet until next month when he steps down - has faced stern criticism for its decision to raise the main refinancing rate to 1.5% back in May. It was widely expected the ECB would start to unwin...