Core prices, which exclude volatile items like food and energy, increased 0.3% month over month in October, the same as August and September. Housing remains the biggest contributor to rising prices, accounting for half of the increase as the shelter index rose 0.4% month over month.

European Central Bank Governing Council member Olli Rehn said a December interest-rate cut is likely and further reductions are possible, but officials should remain cautious and move step by step.

More European Central Bank interest rate cuts are coming and the deposit rate could hit the so-called neutral level in the first half of next year, Finnish central bank chief Olli Rehn said on Tuesday.