Euro Area Inflation Rate Lower than Expected



Consumer prices in the Euro Area are expected to increase 1.4 percent year-on-year in October of 2017, below 1.5 percent in the previous two months and lower than market expectations of 1.5 percent. It is the smallest inflation rate in three months amid a slowdown in energy and services cost, preliminary estimates showed.

Annual inflation is expected to ease for energy (3 percent compared to 3.9 percent in September), services (1.2 percent compared to 1.5 percent) and non-industrial goods (0.4 percent compared to 0.5 percent). On the other hand, prices are seen rising faster for food, alocohol an tobacco (2.4 percent compared to 1.9 percent), namely processed food, alcohol and tobacco (2.1 percent compared to 2 percent) and unprocessed food (2.8 percent compared to 1.5 percent). 

Annual core inflation which excludes cost of energy, food, alcohol and tobacco is expected to fall to 0.9 percent from 1.1 percent in September, reaching the lowest in five months. Excluding energy only, inflation eased to 1.2 percent from 1.3 percent. 

Euro Area Inflation Rate Lower than Expected


Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
10/31/2017 10:20:40 AM