Euro Area Inflation Rate Down to 5-Year Low in September


Euro Area annual inflation was 0.3 percent in September, down from 0.4 percent in August. This is the lowest rate recorded since October 2009. In September 2013 the rate was 1.1 percent.

In September, negative annual rates were observed in Bulgaria (-1.4 percent), Greece (-1.1 percent), Hungary (-0.5 percent), Spain (-0.3 percent), Poland (-0.2 percent), Italy, Slovenia and Slovakia (all -0.1 percent). The highest annual rates were recorded in Romania (1.8 percent), Finland (1.5 percent) and Austria (1.4 percent). Compared with August 2014, annual inflation fell in seventeen Member States, remained stable in two and rose in nine.

The largest upward impacts to Euro Area annual inflation came from restaurants and cafés (+0.09 percentage points), rents (+0.07 pp) and maintenance of vehicles (+0.05 pp), while fuels for transport (-0.21 pp), telecommunications (-0.12 pp) and gas (-0.08 pp) had the biggest downward impacts.

Core inflation rate, which strips out prices of food, energy, alcohol and tobacco fell to 0.8 percent from 0.9 percent in August. Monthly inflation was 0.4 percent.

European Union annual inflation was 0.4 percent, down from 0.5 percent in August.

Nuno Fontes | nuno@tradingeconomics.com
10/16/2014 10:08:38 AM