Eurozone September Inflation Rate Unexpectedly Slows


The annual inflation rate in the Euro Area is expected to ease to 0.9 percent in September 2019 from 1 percent in the previous month and slightly below market expectations of 1 percent, a preliminary estimate showed. It was the lowest inflation rate since November 2016, amid a slowdown in cost of food, alcohol & tobacco and a further fall in prices of energy.

Year-on-year, cost of energy should fall 1.8 percent, faster than a 0.6 percent decline in August. Also, cost of food, alcohol and tobacco is expected to drop to 1.6 percent from 2.1 percent in the previous month, mostly due to unprocessed food (0.7 percent from 2.5 percent) while processed food, alcohol and tobacco is projected to remain steady at 1.9 percent. Meantime, cost of services should rise to 1.5 percent from 1.3 percent in August while prices of non-energy industrial goods are expected to remain unchanged at 0.3 percent.

The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, is likely to increase to 1 percent from 0.9 percent in the prior month in line with market forecasts.

Eurozone September Inflation Rate Unexpectedly Slows


Eurostat | Stefanie Moya | stefanie.moya@tradingeconomics.com
10/1/2019 9:13:15 AM