Eurozone inflation creeps up to ECB target level

BRUSSELS: Inflation across the 16 nations that presently make up the troubled Eurozone hit 1.9 per cent in October, the EU's data agency confirmed on Tuesday.

That takes the rising level of prices to the point the European Central Bank deems just about the outer range of the band seen as sustainable for healthy economic growth.

The 12-month rate rose from 1.8 per cent in September, and has been steadily rising from negative price growth a year ago when the inflation rate hit minus 0.1 per cent.

The lowest inflation rate was observed in Ireland, at minus 0.8. Ireland is in the throes of radical austerity measures to correct public finances.

A mountain of debt in Ireland, principally caused by its banks' massive over-exposure to a property crash, is leading to a frenzy of speculation that Dublin may request assistance for its banking sector at talks between Eurozone finance ministers later on Tuesday in Brussels.

Transport, alcohol and tobacco and housing each logged the highest price rises, the EU's Eurostat data agency added.