DayFR Euro

Inflation slows more than expected in September

Over one year, the consumer price index, in its HICP version, which allows comparison between euro zone countries, stood at 1.8% after an increase of 2% in August and a consensus of economists at 1.9%.

Core inflation, which excludes volatile food and energy prices, slowed to 2.7% in September, compared to 2.8% in August.

Over one month, HICP inflation fell by 0.1% in September, after a fall of 0.2% a month before and a consensus which expected it to be stable.

Economists are closely monitoring German inflation data because Germany, the euro zone’s largest economy, releases its figures a day before those of the entire bloc.

Analysts polled by Reuters expect euro zone inflation to slow further to 1.9% in September, from 2.2% the previous month.

Inflation has already decelerated in Spain and , two other major euro zone economies.

However, the ECB already expected low inflation in September, mainly due to the high base effect of energy prices a year ago, and warned that price rises could start again within months future.

(Reporting Rachel More and Friederike Heine, French version Diana Mandiá, editing by Kate Entringer)

-

Related News :