Euro Area: Pace of decline in annual prices stable in October
Harmonized consumer prices fell 0.3% compared to the same period of the previous year in October, matching September’s decrease. Inflation thus remained below the European Central Bank’s target rate of near, but under, 2.0%. October’s drop was due a sharp fall in prices for energy and to somewhat lower prices for non-energy industrial goods. On the other hand, prices for services and for food, alcohol and tobacco rose.
On a monthly basis, harmonized prices increased 0.2% in October, matching September’s rise. Core inflation, which excludes volatile energy and unprocessed foods prices, was stable at September’s 0.4% in October.
A complete set of data for harmonized inflation will be released on 18 November.
Commenting of the release, Bert Coljin, senior Eurozone economist at ING, stated:
“With new lockdowns, the outlook for inflation for the start of the new year will be weakening too, largely justifying the ECB’s very dovish tone at yesterday’s press conference.”