AUS
NZ
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CA
USA
FRA
GER
ESP
ITA
NLD
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IND
POL
BRA
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RUS
CHN
UAE
Highlights:
- German inflation dropped to 1.8% in September, driven by lower energy prices and goods costs.
- Italy’s inflation fell to 0.8%, with Spain and France also recording declines below 2%.
- Eurozone inflation data is expected to show a slowdown to 1.8%, sparking discussions about potential ECB rate cuts.
Inflation in Germany fell more than expected in September, dropping to 1.8%, according to preliminary data released by the federal statistics office on Monday. The decline exceeded expectations of 1.9% and marked a decrease from the 2% inflation rate recorded in August. The drop was largely driven by lower energy prices and reduced costs for some goods, according to the agency.
Elsewhere in Europe, Italy reported a significant drop in inflation, with consumer prices rising by just 0.8% in September on an annual basis, down from 1.2% in August. Italy's statistics institute attributed the slowdown to decreases in energy, transport, and communication costs. Similarly, Spain and France saw their inflation rates fall below 2%, as reported last Friday.
Looking ahead, inflation data for the 20-nation eurozone is set to be released on Tuesday, with forecasts predicting a slowdown to 1.8% from 2.2% in August. The data will provide further insight into the region's economic trajectory.
Commenting on the broader European outlook, Alexander Valentin, senior economist at Oxford Economics, noted that the faster-than-expected decline in inflation could push the European Central Bank (ECB) to consider a rate cut in October. However, he cautioned that services inflation may remain persistent due to unfavorable base effects.
