Consumer prices in the eurozone hit a six-month high in October, but are set to stabilise next year, the European Commission said.

Inflation in the 12-member bloc rose at an annualised 2.3% in October, 0.1% higher than had earlier been estimated.

Inflation has now been above the European Central Bank's 2.0% target for three consecutive months.

"We expect inflation and core inflation to start coming down early next year," a Commission spokesman said.

Price rises due to the introduction of euro notes and coins at the start of this year are estimated to have added 0.2% to the headline inflation rate, said Eurostat, the Commission's statistics office.

But the impact of the new currency is expected to gradually subside.

Inflated figures

Last week, the ECB said a sluggish eurozone economy and a stronger euro would push inflation below its target in the first half of 2003.

Analysts have expressed hopes that this drop would prompt the ECB to cut interest rates.

The euro has hit parity with the dollar a couple of times in recent weeks.

"It does not affect negatively the Commission's forecasts published last week that we are seeing the last upward movements of average inflation rates for the eurozone," the Commission spokesman said.

Ireland reported the highest rate, at 4.4%, while Germany, Europe's biggest economy, and Belgium showed the lowest at 1.3%.