Eurozone September inflation falls more than expected: 1.7 percent instead of 1.8

Brussels – Inflation in the eurozone falls more than expected. Eurostat changes the preliminary estimates released earlier this month and corrects the inflation figures for September: 1.7 percent, instead of 1.8 percent as anticipated. An across-the-board reduction, that paves the way for another interest rate cut by the European Central Bank, which is meeting today (Oct. 17) in Frankfurt for its monetary policy meeting.

Driving down the inflation index in the euro area was mainly energy, which showed a marked slowdown (from -3 percent to -6.1 percent), followed by the decline in services (from 4.1 percent to 3.9 percent).

From July to September, there is a recorded inflation reduction rate of nearly half a percentage point month over month (-0.4% between July and August, -0.5% between August and September). In just two months, the cost of living has decreased from 2.6% to the current value, below the 2 percent target.

While inflation in the eurozone is falling, the pace and trend are not the same: as many as eight member states of the EU with the single currency (Malta, Portugal, Slovakia, Greece, Croatia, Estonia, the Netherlands, and Belgium) are beyond the reference target, reflecting an asymmetric situation.