Eurozone Inflation Rate Unexpectedly Revised Down to 0.8%

The annual inflation rate in Euro Area dropped to 0.8 percent in September 2019 from 1 percent in the previous month, below a preliminary estimate and market expectations of 0.9 percent, final data showed. It was the lowest inflation rate since November 2016, as energy prices fell further.

Cost of energy declined 1.8 percent, following a 0.6 percent fall in August. Also, prices slowed for food, alcohol & tobacco (1.6 percent from 2.1 percent), mostly due to unprocessed food (0.7 percent from 2.5 percent) and processed food, alcohol & tobacco (1.8 percent from 1.9 percent); and non-energy industrial goods (0.2 percent from 0.3 percent). Meanwhile, cost of services went up 1.5 percent, faster than a 1.3 percent rise in the prior month. 

Among Eurozone's largest economies, the highest annual rate was recorded in France (1.1 percent), followed by Germany (0.9 percent), Italy (0.2 percent) and Spain (0.2 percent).

The annual core inflation, which excludes volatile prices of energy, food, alcohol & tobacco and at which the ECB looks in its policy decisions, was at 1 percent, after a 0.9 percent gain in August and matching a preliminary reading and market forecasts.

On a monthly basis, consumer prices advanced 0.2 percent, following a 0.1 percent increase in the previous month and in line with consensus. 

Eurozone Inflation Rate Unexpectedly Revised Down to 0.8%

Eurostat | Stefanie Moya |
10/16/2019 9:13:30 AM