Brussels (AFP) – The annual rate of inflation in the euro zone in September fell to its lowest levels in two years, the European Union’s statistics agency said Friday.
Published on: 09/29/2023 – 12:41 Last updated: 09/29/2023 – 12:39
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Consumer prices in the single currency area, which includes 20 countries, rose at an annual rate of 4.3 percent, according to Eurostat data, at their lowest rates since October 2021.
Analysts’ forecasts, compiled by FactSet Financial, said inflation would slow to 4.5 percent in September.
Inflation has been declining steadily since it reached its peak at 10.6 percent in October 2022, due to the major repercussions of the Russian war on Ukraine across Europe.
However, this figure remains well above the European Central Bank’s target of 2%.
The European Central Bank has raised interest rates several times to curb severe inflation, but the repercussions affect all aspects of the euro zone economy.
Friday’s data will boost investors’ hopes that the European Central Bank will stop raising interest rates, with the euro zone economy weak and concerns growing about the burdens on households and companies as a result of high borrowing costs.
Core inflation, which excludes volatile energy, food, alcohol and tobacco prices, also slowed from 5.3 percent in August to 4.5 percent in September.
Core inflation is the European Central Bank’s main indicator.
Energy prices witnessed a further decline, falling by 4.7% in September after falling by 3.3% in the previous month.
The rise in food and beverage prices also slowed, reaching 8.8 percent in September compared to 9.7 percent in August, according to Eurostat.
The Netherlands was the only country where consumer prices fell by 0.3 percent, according to Eurostat figures.
The data showed that the performance of Germany, the strongest economy in Europe, was better than in previous months, with inflation slowing from 6.4 percent in August to 4.3 percent in September.
© 2023 AFP
2023-09-29 10:41:06
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