Brussels, 08/11/2006 (Agence Europe) - Having fallen to 1.7% in September, the annual inflation rate in the euro zone fell to 1.6% in October, according to a Eurostat estimation. The slow-down recorded last month compared to August, when prices stood at 2.3%, was down to a base effect which can be ascribed to the very high levels in oil prices prevalent in September 2005. In October, the business climate indicator remained stable in the euro zone, at the highest level since 2000. Its development the previous month and the upturn in industrial production in August suggested an acceleration in production in the third quarter of 2006, Commission points out in a press release published on 31 October. The indicator of economic sentiment for business and consumers improved further in October, in the euro zone and the EU of 25 alike. This increase within the EU can be put down to the services sector and consumers, cancelling out downturns in the indicator for retail trade and the construction sector. In the euro zone, confidence rose in industry, services and retail trade. It remained stable for consumers and dropped slightly for construction. According to most market actors, the European Central Bank (ECB), which will publish its opinion on Thursday, should keep interest rates in the euro zone at the same levels as October. (ab)