Eurozone: Inflation inches down in October
November 16, 2017
Complete data released by Eurostat on 16 November confirmed that harmonized inflation was 1.4% in October, slightly lower than September’s 1.5% reading. The result was in line with the preliminary estimate and is below the European Central Bank’s target of close to, but below 2.0%. According to Eurostat, prices for fuels had the largest upward impact, while the biggest downward impacts came from prices for telecommunication and garments. Annual average inflation was steady at September’s 1.4%, a multi-year high.
Core inflation edged down to 1.1% in October, from September’s 1.3%. Meanwhile, harmonized consumer prices rose 0.1% from the previous month (September: +0.4% month-on-month).
Looking at the countries in the common-currency bloc, the lowest inflation rates were recorded in Cyprus (0.4%), Ireland (0.5%) and Greece (0.5%). On the other side of the spectrum, the Baltics saw the highest inflation with Lithuania leading the pack (4.2%). Regarding the largest economies in the Eurozone, Germany (1.5%) and Spain (1.7%) logged the highest inflation rates. Meanwhile, inflation was below the region’s average in France (1.1%) and Italy (1.1%).