Eurozone: Inflation hits over two-year high in September
October 17, 2016
Complete data released by Eurostat on 17 October confirmed that harmonized inflation was 0.4% in September, above August’s 0.2% and the highest reading seen since June 2014. The result was in line with the preliminary estimate. According to Eurostat, a less negative impulse from energy prices led to September’s rise in inflation.
Core inflation rested at 0.8% for the fourth consecutive month in September. In addition, annual average inflation was steady at August’s 0.1%. Meanwhile, harmonized consumer prices increased 0.4% in September on a monthly basis, after rising 0.1% in August.
Looking at the countries in the common-currency bloc, 10 of the 19 Eurozone economies showed inflation rates equal to or above the regional average. Belgium (1.8%), Estonia (1.7%) and Austria (1.1%) were the economies with the highest rates. In contrast, Slovakia (-0.5%), Cyprus (-0.4%) and Ireland (-0.4%) were the economies that registered the largest annual declines in HICP consumer prices. Among the largest economies in the Eurozone, inflation rose in France (0.5%), Germany (0.6%) and Italy (0.2%). Meanwhile, consumer prices recorded flat growth in Spain.