Annual inflation turned negative again in the eurozone and the European Union in September, primarily due to the drop in energy prices.
The annual inflation rate for both the eurozone and the European Union turned red again in September, settling at -0.1% compared to 0.1% in August, as confirmed by the European statistics office Eurostat.
This is not a good sign for the European Central Bank (ECB), which has been pursuing a very accommodative monetary policy for several months to rekindle inflation and boost growth.
This underperformance, however, is not a surprise. The decline in inflation is mainly linked to the drop in energy prices (transport fuel, liquid fuels) as well as milk, cheese, and eggs. Conversely, the prices of restaurants, cafes, and tobacco have increased, notes Eurostat.
No fewer than seventeen European countries recorded negative annual inflation rates, including Cyprus (-1.9%) and Spain (-1.1%). In contrast, the highest rates were observed in Malta (1.6%), Belgium, and Portugal (0.9%). France cannot take joy with its rate at 0%.
