Deflation Returns to the Euro Area

Consumer prices in the Eurozone fell for the first time in six months by an annual 0.1 percent in September, pushed down by energy prices and matching preliminary estimates. The inflation rate has been below the ECB's 2 percent target since February of 2013.

The largest downwards impacts to euro area annual inflation came from fuels for transport (-0.71 pp), heating oil (-0.25 pp) and milk, cheese & eggs (-0.06 pp) while restaurants & cafés (+0.12 percentage points), vegetables (+0.11 pp) and tobacco (+0.08 pp) had the biggest upward pressure.

Core inflation rate which excludes prices of energy, food, alcohol and tobacco was recorded at 0.9 percent, the same as in August and excluding energy, consumer prices rose 1 percent, just like in the previous month. 

On a monthly basis, the inflation rate increased to 0.2 percent, the highest figure in four months. 

European Union annual inflation rate was also recorded at -0.1 percent in September. Among member states, negative annual rates were observed in seventeen countries with Cyprus (-1.9 percent), Romania (-1.5 percent) and Spain (-1.1 percent) recording the lowest figures while Malta (1.6 percent), Belgium, Portugal and Sweden (all 0.9 percent) posted the highest ones. Compared with August 2015, annual inflation fell in eighteen Member States, remained stable in four and rose in six.

Deflation Returns to the Euro Area

Eurostat | Joana Taborda |
10/16/2015 10:16:38 AM