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The eurozone inflation eased in the past three months after hitting a record high of 4.0 percent in June and July. It was 3.6 percent in September.
Although it was the lowest level in nine months, the figure remained higher than 2.6 percent registered a year earlier and well above the two-percent ceiling preferred by the European Central Bank (ECB) to maintain price stability.
The recent easing was mainly due to retreats of oil prices. Figures showed energy prices in the euro zone rose by 9.6 percent on a yearly basis in October, while food prices registered an annual growth of 4.7 percent. Both slowed down from previous months.
Analysts said easing inflation would give the Frankfurt-based ECB more room to cut its benchmark interest rate to stimulate an economy which was already in recession due to the financial crisis.
Eurostat estimated separately that the eurozone economy contracted by 0.2 percent in the third quarter of 2008 after a decline of the same percentage in the second quarter, which means the combined economy of the 15 countries using the same currency was officially in recession.
In technical terms, recession is widely defined as negative growth in two consecutive quarters.
In the face of a sluggish economy, the ECB decided earlier this month to cut its benchmark interest rate by 0.5 percentage point to support growth, the second time in less than one month.
It was widely expected that the ECB would make further cut by the year end.
In the 27-nation EU, inflation also fell to 3.7 percent in October from 4.2 percent in September. A year earlier the rate was2.7 percent.