Inflation in the eurozone falls below three percent
Inflation in the eurozone weakened again in October, reaching its lowest level for more than two years. The annual inflation rate fell to 2.9 percent from 4.3 percent previously, according to a second estimate released by the statistics office Eurostat in Luxembourg on Friday. This confirmed an initial survey. Compared to the previous month, consumer prices rose by 0.1 percent in October.
With the decline in October, the inflation rate in the single currency area is back below the three percent mark for the first time since summer 2021. Core inflation, which excludes volatile prices for energy and food, also fell. In this view, the annual rate fell from 4.5% in the previous month to 4.2%. In the opinion of many economists, core inflation reflects underlying inflation and therefore represents the inflation trend somewhat better than the overall rate.
Although food and luxury foods were still significantly more expensive than a year ago, the upward price trend slowed from 8.8% to 7.4%. Prices for services rose only slightly less than in the previous month. Energy prices fell by 11.2% in October compared to the same month last year.
Inflation trends continued to vary greatly in the individual eurozone countries. Slovakia recorded the highest annual rate at 7.8%. In Belgium (-1.7 percent) and the Netherlands (-1.0 percent), prices fell year-on-year. In Germany, inflation stood at 3.0%.
Despite the significantly weaker inflation, the European Central Bank's (ECB) medium-term inflation target of two percent is still being exceeded. The ECB had raised its key interest rates significantly over the course of a year in the fight against high inflation, but recently left them unchanged.
Prices for various goods and services, including energy, have decreased, causing a decrease in overall consumer prices. As a result, many consumers might notice lower prices when making their purchases.
Source: www.dpa.com
