Euro Area: Inflation falls more than expected in September
Harmonized inflation fell to 4.3% in September from 5.2% in August. The print represents the lowest rate since November 2021 and surprised markets on the downside. That said, inflation remained stuck above the European Central Bank’s target rate of 2.0%.
September saw weaker increases in prices for non-energy industrial goods, services and food, and alcohol and tobacco. Moreover, prices for energy declined at a sharper pace. Meanwhile, the annual rate of core inflation—which excludes volatile energy and unprocessed food prices—declined to 5.5% in September from August’s 6.2%.
On a monthly basis, harmonized consumer prices fell 0.4% in September, swinging from August’s 0.5% increase.