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Euro zone inflation rate dips again

An initial estimate has shown that the annual rate of inflation in the euro zone eased for the second month running in September.

The EU statistics agency Eurostat said the rate was 3.6%, down from 3.8% in August.

Annual inflation in the euro zone has steadily slipped since hitting a record 4% in July as oil prices declined from record levels above $147.

Despite the fall in inflation, the rate remains well above the European Central Bank's comfort zone, which it defines as a level of close to but less than 2%.

While broadly ruling out an interest rate cut at Thursday's ECB meeting, economists said that the fall in inflation set the stage for easing later in the future.