The Eurozone consumer prices are expected to fall 0.3 percent from a year earlier in September 2020, the steepest decline since April 2016 and compared to market expectations of a 0.2 percent drop, a preliminary estimate showed. Prices should fall for both energy products (-8.2 percent vs -7.8 percent in August) and non-energy industrial goods (-0.3 percent vs -0.1 percent). At the same time, inflation is set to slow for services (0.5 percent vs 0.7 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 ease further to 0.2 percent, the lowest on record and below forecasts of 0.5 percent. On Wednesday, ECB President Christine Lagarde signaled a change to the central bank’s strategy, leaving the door open to tweak the 2 percent inflation target. The move would probably allow inflation rate to overshoot after missing the central bank's target for years.
Inflation Rate in the Euro Area averaged 1.94 percent from 1991 until 2020, reaching an all time high of 5 percent in July of 1991 and a record low of -0.60 percent in July of 2009. This page provides the latest reported value for - Euro Area Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Euro Area Inflation Rate - data, historical chart, forecasts and calendar of releases - was last updated on October of 2020. source: Eurostat
Inflation Rate in Euro Area is expected to be 0.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Euro Area to stand at 1.20 in 12 months time. In the long-term, the Euro Area Inflation Rate is projected to trend around 1.40 percent in 2021 and 1.70 percent in 2022, according to our econometric models.