European Union, Inflation Slows To 4.3%

Inflation in the Eurozone has finally slowed: according to the statistical agency Eurostat, price growth slowed from 5.2% in August to 4.3% in September. This is a result that exceeded expectations and may herald the end of the period of rate hikes by the European Central Bank.
Taking into consideration inflationary components, according to Eurostat’s urgent estimates, the rate of growth in prices for food, alcohol, and tobacco amounted to 8.8% in September compared to 9.7% in August. This is followed by services (4.7% in September compared to 5.5% in August), non-energy industrial goods (4.2% in September compared to 4.7% in August), and energy (-4. 7% in September compared to -3.3% in August).
In Italy, inflation also fell, although less than the EU average: September recorded +5.3% year-on-year (+0.2% month-on-month) compared to 5.4% in August. “The new decline in inflation is influenced by the trend of rising food prices, the annual growth of which is significantly reduced, although it remains at relatively high values (+8.6%). On the other hand, acting as the brake on reducing inflation is the growing tension in prices for energy goods, especially in the unregulated sector, which returns the price growth trend in this sector to positive values. The rise in prices for transport services may also accelerate. Finally, year-on-year price increases for the food basket fell to +8.3% in September,” the Italian statistical agency ISTAT said in an accompanying note.