Euro Area Inflation September 2020

Euro Area: Annual prices fall at sharpest pace in over four years in September

October 16, 2020

Harmonized consumer prices fell 0.3% compared to the same period of the previous year in September, a sharper fall than August’s 0.2% decrease. Inflation thus moved further away from the European Central Bank’s target rate of near, but under, 2.0%. September’s more pronounced drop was due to sharper falls in prices for energy and for non-energy industrial goods, as well as to a softer increase in prices for services. On the other hand, prices for food, alcohol and tobacco increased at a somewhat faster clip than in August.

On a monthly basis, harmonized prices rose 0.1% in September, contrasting August’s 0.4% decrease. Core inflation, which excludes volatile energy and unprocessed foods prices, fell to 0.4% from August’s 0.6%.

FocusEconomics Consensus Forecast participants expect harmonized inflation to average 0.5% in 2020, which is down 0.1 percentage points from last month’s forecast. For 2021, panelists expect harmonized inflation to average 1.2%.


Author: Massimo Bassetti, Senior Economist

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Euro Area Inflation September 20 20

Note: Year-on-year and month-on-month var. of harmonized consumer price index (HICP) in %.
Source: Eurostat


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