Inflation in the eurozone fell to a two-year low

Projected inflation in the eurozone fell from 5.2% in August to 4.3% in September, Eurostat reports (PDF). Thus, it was at its lowest level over the past two years. Including prices for food, alcohol and tobacco increased by 8.8% (in August there was an increase of 9.7%), for services – by 4.7% (from 5.5%), industrial goods – by 4 .2% (was 4.7%). Energy prices fell by 4.7% (in August it was -3.3%). The largest price increases in September were recorded in Slovakia, Slovenia, and Croatia, which became a member of the euro area on January 1, 2023. Prices increased the least in Belgium and Greece; deflation was recorded in the Netherlands.

Experts note that the decline in consumer prices in the euro area was influenced by the tightening of the ECB’s policy. Over the past year, the regulator increased the key rate ten times (to 4.5% in September). Let us recall that in the fall of last year, inflation in many countries reached double-digit values ​​against the backdrop of rising energy and food prices.