hello. Today we’re going to talk about consumer price inflation in the Eurozone for September 2021. Eurostat, the official statistical organization of the European Union, recently announced that consumer price inflation came in at 4.3% in September.
Lowest growth rate since October 2021
Surprisingly, this is the lowest level of growth since October 2021. The previous month, August, saw a 5.2% increase, a decrease of 0.9 percentage points.
Slower core inflation
And the all-important underlying inflation rate. In September, core inflation was 4.5%, down 0.8 percentage points from 5.3% in the previous month, August. This is the largest slowdown since August 2020.
Easing the pace of sectoral inflation
By sector, the pace of inflation eased across all sectors, with food, alcohol, and tobacco inflation falling to 8.8% in September from 9.7% in August. Notably, energy prices, which have been a major contributor to the Eurozone’s inflation spike over the past year, also saw a larger decline, from -3.3% in August to -4.7% in September.
The ECB and inflation
These indicators show that the European Central Bank’s (ECB) series of interest rate hikes are working to reduce inflation. This could be interpreted as a positive sign that the ECB has raised rates enough to address the inflationary challenges it faces. However, the ECB remains cautious about its next steps.
In any case, these are all important pieces of information that give us a view of the current inflation rate in the Eurozone. These statistics help us understand the future direction of financial policy and how it will affect our daily lives.
