Eurozone: Regional inflation slows to lowest level in nearly four years
October 16, 2013
According to detailed figures for September, consumer prices rose 0.5% over the previous month, which was above the 0.1% increase recorded in August. Annual headline inflation fell from 1.3% in August to 1.1% in September, which marks the lowest level since February 2010. Meanwhile, annual average inflation dropped from 1.9% in August to 1.7% in September.
The core inflation index, which does not include prices for energy, rose 0.6% over the previous month (August: +0.2% month-on-month). Annual core inflation inched down from 1.3% in August to 1.2% in September.
At a country level, 8 of the 17 Eurozone economies posted annual inflation rates equal to or above the regional average. Estonia (2.6%) and the Netherlands (2.4%) recorded the highest annual inflation rates. At the other end of the spectrum, Greece experienced a 1.0% year-on-year drop in consumer prices. Among the major economies in the area, inflation was above the regional average in Germany (1.6%), whereas it was below the average in France (1.0%), Italy (0.9%) and Spain (0.5%).
FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 1.5% in 2013, which is unchanged from last month's forecast. For 2014, panelists also expect inflation to average 1.5%, which is unchanged from last month's projection as well.
Author: Armando Ciccarelli, Head of Data Solutions