Official EU figures show that Inflation in the euro zone dropped faster than expected in September as energy prices fell sharply.
The annual inflation rate plunged to the lowest level since March 2005 in September, falling to 1.7% from 2.3% in August, the EU's Eurostat agency said, revising lower a first estimate of 1.8%.
The drop in headline inflation came as oil prices hit their lowest level in months. Euro zone inflation most recently peaked at 2.5% in May and June amid record high oil prices due to tensions in the Middle East.
The September drop brought inflation below the European Central Bank's preferred level of close to but less than 2% for the first time since January 2005.
Separate Eurostat figures showed that industrial production in the euro zone snapped back in August from a lacklustre July, growing more strongly than expected.
Factory and refinery production grew by 1.8% over one month in August and by 5.4% over one year. Economists had expected a 1.4% monthly increase. The August increase came after output dipped by 0.4% in July.
