Eurozone inflation increase dampens rate cut hopes
A spike in inflation across the eurozone may affect whether the European Central Bank reduces interest rates.
Inflation jumped to 3% from 2.5% in August.
Analysts now say that outgoing ECB president Jean Claude Trichet faces a difficult call on whether to reduce interest rates to deal with the tougher economic climate or leave them unchanged.
A cut of .0.25% in interest rates from 1.5% to 1.25% had been expected at next week's meeting of the ECB, the last to be chaired by Mr Trichet.
But analysts now expect that it will be towards the end of the year before there is any reduction.
