Eurozone Inflation


Eurozone: Annual inflation inches up in October but remains in “danger zone”

November 14, 2014

According to the data released by Eurostat on 14 November, the harmonized index of consumer prices (HICP) fell 0.1% in October over the previous month. The reading contrasted the 0.4% drop recorded in September.

Annual headline inflation inched up from 0.3% in September to 0.4% in October. The reading was in line with the flash estimate released on 31 October. Despite the slight pick-up, annual inflation has been in what ECB President Mario Draghi called the “danger zone” of below 1.0% for the 13th consecutive month. Annual average inflation was stable at September’s 0.6%.

The core inflation index, which does not include prices for energy and unprocessed food, was unchanged over the previous month (September: +0.5% month-on-month). Annual core inflation inched down from 0.8% in September to 0.7% in October.

At a country level, 10 of the 18 Eurozone economies posted annual inflation rates equal to or above the regional average. Austria (1.4%) and Finland (1.2%) recorded the highest annual inflation rates. At the other end of the spectrum, Greece (-1.8%) and Spain (-0.2%) experienced year-on-year decreases in harmonized consumer prices. Among the remaining major economies in the Eurozone, inflation was above the regional average in Germany (0.7%) and France (0.5%), while it was below average in Italy (0.2%).

FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 0.5% in 2014, which is unchanged from last month’s forecast. For 2015, panelists expect inflation to average 0.9%, which is down 0.1 percentage points from last month’s forecast.

Author:, Head of Data Solutions

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Eurozone Inflation Chart

Euro Inflation by country October 2014

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

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