Less inflationary pressure in the eurozone
The rise in prices in the eurozone is easing noticeably. Consumer prices rose by 2.9% in October compared to the same month last year, according to Eurostat, the statistical office, confirming a flash estimate.
Inflation is thus clearly on the decline: as recently as fall 2022, it had at times exceeded ten percent; in September of this year, it stood at 4.3 percent. In Germany, the inflation rate according to the measure calculated for the European comparison (HICP) was 3.0% in October, slightly above the value for the eurozone.
However, it was significantly higher in new member Croatia (6.7 percent) and Slovakia (7.8 percent). In the Netherlands (minus 1.0 percent) and Belgium (minus 1.7 percent), on the other hand, consumer prices fell.
The EU Commission assumes that inflation rates in Germany (3.1 percent) and the eurozone (3.2 percent) will remain above the European Central Bank's target of 2.0 percent next year. In view of the economic downturn, the "last mile" before reaching the inflation target could well be the most difficult for the ECB, Bundesbank head Joachim Nagel recently warned.
According to a survey by the Reuters news agency, the majority of economists do not expect the ECB to cut interest rates for the first time before next July. After ten interest rate hikes, the key deposit rate on the capital market now stands at 4.0 percent - the highest level since the start of monetary union in 1999.
The decrease in inflationary pressure in the eurozone is contributing to less strain on consumer spending. Despite this, the EU Commission forecasts that inflation rates in Germany and the eurozone will remain above the European Central Bank's target of 2.0% next year.
Source: www.ntv.de
