BREAKING: Final inflation reading matches expectations. Core HICP inflation marginally higher

EU – Final consumer inflation for September

• HICP inflation (m/m): 0.1% (forecast: 0.1%; previous: 0.1%)
• Core HICP inflation (m/m): 0.2% (forecast: 0.1%; previous: 0.3%)
• HICP inflation (y/y): 2.2% (forecast: 2.2%; previous: 2.0%)
• Core HICP inflation (y/y): 2,4% (forecast: 2.3%; previous: 2.3%)

In September, the consumer inflation (HICP) in the Eurozone increased by 0.1% month-on-month, which was in line with expectations and the previous reading. However, core HICP inflation, which excludes energy and food prices, rose by 0.3% month-on-month, higher than the forecasted 0.1% and the prior 0.2%, indicating a slight acceleration in core price growth. On an annual basis, overall HICP inflation fell to 2.0%, below the expected 2.2% and the previous 2.2%, suggesting a slowdown in the pace of consumer price increases. Core HICP inflation year-on-year remained stable at 2.3%, in line with forecasts and slightly below the previous reading of 2.4%, indicating relative stability but still at a higher level than overall inflation. In summary, overall inflation in the Eurozone is slowing down, while core inflation shows slight signs of increase, which may indicate persistent inflationary pressures in key price categories.

The final data for September confirm a modest increase in inflation in the previous month. The current stance of the ECB remains unchanged, therefore monetary policy is expected to remain on hold at least until the end of the year.

Source: xStation5