Eurozone inflation slowed to 1.8% in September

Analysts expected a reduction in the growth rate of consumer prices in September to 1.9%

Inflation in the Eurozone in September 2024 increased by 1.8% compared to the same month of 2023. Thus, the indicator slowed down compared to August, when it was 2.2%. This is evidenced by preliminary Eurostat data.

The consensus forecast of analysts, cited by Trading Economics, expected a reduction in the growth rate of consumer prices in September to 1.9%.

Core inflation, which excludes energy and food costs, also slowed in September compared to August to 2.7%. Energy prices fell by 6% after falling by 3% in August.

In September, the bloc’s member countries with the highest annual inflation rates were Belgium (4.5%), the Netherlands (3.3%), and Estonia (3.2%). The lowest rates were recorded in Ireland (0.2%) and Lithuania (0.4%). Consumer prices rose by 1.8% in Germany, by 0.8% – in Italy, and by 1.5% – in France.

Inflation in Germany slowed to its lowest level since February 2021 in September. At the same time, analysts expected the indicator to be at the level of +1.9% after +2% in August. The ECB, whose inflation target for 2024 is set at +2%, may resort to another reduction in interest rates in October, relying on the positive September results of the main economies of the eurozone.

However, the ECB notes that the September slowdown in eurozone inflation is the result of a high base of comparison in September 2023, mainly due to the increase in energy prices observed during this period. Therefore, within the next few months, the indicator may rise again.

As GMK Center reported earlier, in September of this year, the European Central Bank lowered all three key interest rates. The deposit rate was cut by 25 basis points to 3.5%. The rate of main refinancing operations was reduced to 3.65%, the rate of marginal loans – to 3.9%

It is expected that the rate of growth of consumer prices will accelerate by the end of the year, in particular, due to the low base of comparison, but by the second half of 2025, inflation will be at the level of +2%.