Eurozone Inflation


Eurozone: Inflation slows in September to lowest level in almost five years

October 16, 2014

According to the data released by Eurostat on 16 October, the harmonized index of consumer prices (HICP) rose 0.4% in September over the previous month. The reading came in above the 0.1% increase recorded in August.

Annual headline inflation inched down from 0.4% in August to 0.3% in September. The reading was in line with the flash estimate released on 30 September and marks the lowest inflation in almost five years. In addition, annual inflation has been in what ECB President Mario Draghi called the “danger zone” of below 1.0% for the 12th consecutive month. Annual average inflation inched down from 0.7% in August to 0.6% in September.

The core inflation index, which does not include prices for energy, rose 0.5% over the previous month (August: +0.3% month-on-month). Annual core inflation inched down from 0.9% in August to 0.8% in September.

At a country level, 8 of the 18 Eurozone economies posted annual inflation rates equal to or above the regional average. Finland (1.5%) and Austria (1.4%) recorded the highest annual inflation rates. At the other end of the spectrum, Greece (-1.1%) and Spain (-0.3%) 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 (0.8%) and France (0.4%), while harmonized prices dropped in Italy (-0.1%).

FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 0.9% in 2014, which is unchanged from last month’s forecast. For 2015, panelists expect inflation to average 1.3%.

Author:, Head of Data Solutions

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Eurozone Inflation Chart

Euro Inflation by country September 2014

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

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