Europe’s inflation eased to 2.9% in October thanks to lower fuel prices. But growth has vanished

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — The inflation that has been wearing on European consumers fell sharply to 2.9% in October, its lowest in more than two years as fuel prices fell and rapid interest rate hikes from the European Central Bank took hold. But that encouraging news was balanced by official figures showing economic output in the 20 countries that use the euro shrank by 0.1% in the July-September quarter. Germany, the largest of the 20 countries that use the euro, saw its economy output fall by 0.1%, while No. 2 economy France only scraped out 0.1% growth, slowing from 0.6% in the previous quarter. Ireland’s drop in GDP of 1.8% was the largest among eurozone economies. It disproportionately reflects the finances of multinational companies that are based there.