Euro zone Q3 growth steady as expected, Oct inflation picks up

BRUSSELS (Reuters) - Euro zone economic growth was unchanged in the third quarter from the second as expected and inflation picked up in October due to a smaller decline in energy prices, preliminary data showed on Monday.

The European Union's statistics office Eurostat said gross domestic product in the 19 countries sharing the euro rose 0.3 percent quarter-on-quarter in the July-September period, the same as in the second quarter.

In year-on-year terms, the euro zone economy expanded 1.6 percent, also the same as in the second quarter and in line with expectations of economists polled by Reuters.

Consumer prices rose 0.5 percent year-on-year in October, Eurostat estimated, picking up from 0.4 percent in September and 0.2 percent in August as the drag on the index from energy diminished.

Energy prices were only 0.9 percent lower in October than 12 months earlier, compared to 3.0 percent lower in September, 5.6 percent lower in August and 6.7 percent lower than in July.

However, excluding the most volatile prices for unprocessed food and energy, inflation was 0.7 percent year-on-year, down from 0.8 percent in the previous five months.

The European Central Bank wants inflation to be higher -- close to 2 percent over the medium term -- and it has been buying euro zone government bonds on the secondary market to inject more cash into the banking system and make banks lend the money to the real economy.

(Reporting By Jan Strupczewski; editing by Philip Blenkinsop)