Eurozone October Inflation Rate Eases to Near 3-Year Low


The annual inflation rate in the Euro Area is expected to slow to 0.7 percent in October 2019 from 0.8 percent in the previous month, matching market expectations, a preliminary estimate showed. It was the lowest inflation rate since November 2016, as cost of energy dropped further.

Year-on-year, cost of energy is projected to decline 3.2 percent, faster than a 1.8 percent fall in September. On the other hand, cost of food, alcohol and tobacco should rise 1.6 percent, the same pace as in the prior month, as both unprocessed food (at 0.7 percent) and processed food, alcohol and tobacco (at 1.8 percent) are expected to remain steady. In addition, cost of services should increase to 1.6 percent from 1.5 percent; and prices of non-energy industrial goods are expected to advance 0.3 percent from 0.2 percent in September. 

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 rose to 1.1 percent from 1 percent in the previous month and in line with market consensus.

Eurozone October Inflation Rate Eases to Near 3-Year Low


Eurostat | Stefanie Moya | stefanie.moya@tradingeconomics.com
10/31/2019 10:11:42 AM