Euro area inflation slows to 1.7% in Sept

The annual inflation rate in the euro area eased to 1.7 per cent in September 2024, down from 2.2 per cent in August 2024, according to the EU statistical office Eurostat data released Thursday. It marks a significant decline from the 4.3 per cent rate recorded a year earlier.

This cements the case for a second straight interest-rate cut by the European Central Bank (ECB).

In the European Union as a whole, annual inflation also fell to 2.1 per cent in September, from 2.4 per cent in August, and 4.9 per cent a year ago.

Ireland and Lithuania recorded the lowest annual inflation rates at 0.0 per cent and 0.4 per cent, respectively. Slovenia and Italy also recorded low annual inflation rate both 0.7 per cent. In contrast, Romania had the highest rate at 4.8 per cent, followed by Belgium and Poland of4.3 per cent and 4.2 per cent, respectively.

Compared to August, annual inflation rates decreased in twenty EU Member States, remained stable in two, and increased in five.

Services contributed the most to the overall euro area inflation rate in September of +1.76 percentage points, followed by food, alcohol, and tobacco (+0.47 percentage points). Energy prices, on the other hand, made a negative contribution of -0.60 percentage points.

Attribution: Eurostat