Saturday, April 20, 2024
HomeWorld NewsEuro zone inflation fell to 4.3% in September, lowest level since October...

Euro zone inflation fell to 4.3% in September, lowest level since October 2021

Fresh fruit is displayed at a produce stall inside an indoor market in central Madrid, Spain, Wednesday, August 30, 2023.

Bloomberg | Bloomberg | Getty Images

Eurozone annual inflation cooled to its lowest level since October 2021, falling to 4.3% in September. flash Data released on Friday.

This was down from an annual rate of 5.2% in August, while month-on-month inflation fell to 0.3% from 0.5%.

Core inflation, which excludes energy, food, alcohol and tobacco and is closely watched by monetary policymakers, fell to 4.5% in September from 5.3% in August.

The new announcement follows the European Central Bank’s decision to raise interest rates to a record level in September, setting the key interest rate at 4%.

The move, described as a “dovish rate hike”, also comes after the ECB made its strongest suggestion yet that its Governing Council believes interest rates are likely to be high enough to keep inflation under target over the medium term.

The bank’s latest macroeconomic forecast for the euro zone predicts that inflation will average 5.6% this year, falling to 3.2% in 2024 and 2.1% in 2025.

Officials have tried to curb expectations of imminent rate cuts, with Bank of France President Francois Villeroy de Galhau telling CNBC this week that it was “too early to bet on when the first rate cut would come.” Too early.”

The situation remains complicated. The European Central Bank predicts that the Eurozone economic growth will be 0.7% this year, 1% and 1.5% respectively in the next two years.

The recent spike in oil prices could also pose risks to the bank’s inflation forecasts.

Inflation remains very different between European countries. Annual price growth in Germany, the euro zone’s largest economy, remains well above the 4.3% target as it also faces an economic contraction.

estimate Data from Eurostat show that the overall inflation rates in Eurozone countries were 5.6% and 3.2% respectively in September, while the inflation rates in Slovakia and Slovenia were 8.9% and 7.1%.

- Advertisment -
Google search engine

Most Popular

Recent Comments