Eurozone: Inflation inches up in September
October 17, 2018
According to complete data released by Eurostat on 17 October, harmonized inflation came in at 2.1% in September, matching the preliminary estimate. The result was slightly above August’s 2.0% and marked one of the highest readings seen in the past two years. Inflation sits just above the European Central Bank’s target rate of near, but below, 2.0%. Higher price pressures for food, alcohol and tobacco products, as well as energy costs drove September’s uptick.
Annual average inflation was unchanged at August’s 1.6% in September. Meanwhile, core inflation edged down to 1.1% from August’s 1.2%. On a monthly basis, harmonized consumer prices rose 0.5% in September, above August’s 0.2% increase.
Among the countries in the common-currency bloc, Estonia (3.5%) and Latvia (3.3%) experienced the highest inflation. On the flipside, Ireland (1.3%) and Greece (1.1%) recorded the lowest inflation. Regarding the largest economies in the Eurozone, inflation edged down in France (2.5%) and Italy (1.5%) but rose in Germany (2.2%) and Spain (2.3%).
Eurozone Inflation Forecast
FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 1.6% in 2018. For 2019, panelists expect inflation to also average 1.6%.