Energy and food prices pushed euro zone inflation in October to its highest in more than two years.
The European Union statistics office confirmed that consumer prices in the 13 countries using the euro rose 0.5 per cent month-on-month and 2.6 per cent year-on-year, in line with economists' expectations.
Energy prices jumped 0.6 per cent on the month and 5.5 per cent year-on-year, while food, alcohol and tobacco surged 1 per cent against September and 3.5 per cent against the same period of last year.
European Central Bank Executive Board member Juergen Stark said upside risks to inflation had increased and that the ECB was ready to raise rates if necessary.
But he also said financial market turmoil could dampen growth, which analysts interpreted as backing expectations that rates would stay on hold for some time to come.
October's annual inflation was the highest since September 2005. In December that year, the ECB, which wants to keep inflation just below 2 per cent, started raising interest rates from 2 per cent to the current 4 per cent.