Euro Area Inflation Rate Eases to 0.7% in October


In October, Euro Area’s inflation rate is expected to decelerate to 0.7 percent on an annual basis, down from 1.1 percent in September and 2.5 percent a year ago. Prices are expected to slow for the third consecutive month, mainly due to lower food cost and a drop in energy prices.

Looking at the main components of euro area inflation, food, alcohol and tobacco is expected to have the highest annual rate in October (1.9 percent, down from 2.6 percent in September), followed by services (1.2 percent, compared with 1.4 percent in September), non-energy industrial goods (0.4 percent, stable compared with September) and energy (-1.7 percent, compared with -0.9 percent in September).

The core inflation rate, which excludes more volatile components such as energy, food, alcohol and tobacco, is expected to be 0.8 percent, down from 1 percent in the previous month.

Euro Area Inflation Rate Eases to 0.7% in October


Eurostat | Krisztina Györffy | krisztina@tradingeconomics.com
10/31/2013 10:35:11 AM