Eurozone inflation edged up slightly in September, with the consumer price index rising 2.2% year-on-year, up from 2.1% in August, according to the European Commission. The increase comes as the region navigates a slow and uneven recovery.

As the Eurozone braces itself for a modest recovery, the European economic indicators remain mixed. GDP and industrial output show improvement, but weak consumer demand and ongoing manufacturing struggles highlight the recovery’s fragility.

As we expect a moderate Eurozone recovery for the next two quarters, but not across all Eurozone states. Thus the growth will be uneven throughout. However, we believe it will remain fragile...