Inflation Rates Show Significant Slowdown in Europe
Recent reports from Italy and France confirm a notable decline in inflation rates across Europe, reflecting broader economic trends. In Italy, the national consumer price index (NIC) recorded a 0.7% increase year-on-year in September, down from 1.1% in August, marking the lowest inflation level for the year. The decrease is primarily attributed to falling energy prices, both regulated and non-regulated, as well as a slowdown in the prices of recreational and transport services.
In France, the National Institute of Statistics and Economic Studies (INSEE) reported a 1.1% year-on-year inflation increase for September, a decrease from 1.8% in August. The drop was largely driven by a 3.3% decline in energy prices, which had previously experienced a slight increase. Monthly comparisons indicate a 1.2% decrease in the consumer price index, the largest monthly drop since 1990, suggesting a significant shift in consumer spending patterns and economic conditions.
The harmonised index of consumer prices (HICP), which is crucial for the European Central Bank's monetary policy, also showed a decline, rising by 1.4% year-on-year compared to 2.2% in August. This trend may influence the ECB's decisions on interest rates in the upcoming meetings, potentially leading to further adjustments in response to the changing economic landscape.
