Eurozone inflation doubles in September
Inflation in the eurozone doubled in September to 0.4%, in line with expectations, as the impact of weaker energy prices began to fade, according to a flash estimate from Eurostat.
Core inflation, which excludes unprocessed food and energy, was stable at 0.8% versus expectations of a nudge higher to 0.9%.
Excluding energy, food, alcohol and tobacco products, the inflation rate was 0.8%, the same as in August.
Prices of food, alcohol and tobacco products were up 0.7% compared to 1.3% the month before, while services sector prices were up 1.2% compared to 1.1%. Meanwhile, energy prices declined 3% on the year compared with a 5.6% drop in August.
Capital Economics said: “Unless oil prices drop back sharply, headline inflation will climb towards the ECB’s near-2% target over the coming months as negative energy effects finally fade. But this will only be temporary, as core price pressures are set to remain subdued.”