BRUSSELS, Nov 16 (Reuters) - Cheaper food and fuel pulled down the euro zone consumer price index in October for a fifth month running in annual terms, data showed on Monday, confirming earlier estimates.
Prices in the 16-country area rose 0.2 percent month-on-month but dipped 0.1 percent year-on-year, European Union statistics agency Eurostat said.
Economists polled by Reuters had on average expected 0.3 percent monthly inflation after Eurostat on Oct. 30 estimated the annual fall to be 0.1 percent. They also expect prices to start growing year-on-year in November.
In year-on-year terms, fuel for transport, gas, heating oil and food had the biggest downward impact on the index. Month-on -month, it was petrol and food.
Core inflation, which strips out volatile food and energy prices, was 0.3 percent on the month and 1.0 percent year-on-year, the latter down from 1.1 percent in September and 1.2 percent in August.
The European Central Bank wants inflation to be just below 2 percent over the medium term and has kept interest rates unchanged at a record low of 1 percent since May. It watches the core number closely for signs of inflationary pressure.
Economists expect that despite signs of economic recovery, the ECB will keep interest rates unchanged until late in 2010 because inflation is low and inflation expectations are anchored at the ECB's price stability target.
The Eurostat data showed energy prices fell 0.2 percent on the month and 8.5 percent year-on-year. Food prices were flat against September and 1.5 percent lower than a year before. (Reporting by Jan Strupczewski, editing by Dale Hudson)