Inflation in the eurozone fell to 2.9% in October, its lowest level since July 2021

The interannual inflation rate of the eurozone fell to 2.9% in October, which was the lowest figure since July 2021, as reported this Friday by the community statistics office Eurostat, which, in this way, confirms the preliminary estimate published last October 31.

The community statistics office also reported today that annual inflation in the European Union in October fell to 3.6% in the tenth month of 2023, a figure that has not been recorded since September 2021.

In September, inflation had stood at 4.3% in the twenty countries that share the euro and at 4.9% in the Twenty-seven. In October 2022, year-on-year inflation was 10.6% in the euro area and 11.5% in the community club as a whole.

Core inflation, which excludes the effect of energy and fresh food prices as they are the most volatile, fell to 5% in the eurozone, five tenths less than what was recorded in September and also below the 6.4% reached in October 2022.

Regarding the different product categories, the largest contribution to the 2.9% year-on-year inflation rate in the eurozone came from services (1.97 percentage points), followed by food, alcohol and tobacco (1 .48 points) and non-energy industrial goods (0.9 points). In the case of energy, it had a negative contribution of -1.45 points.

By country, prices fell in October in Belgium (1.7% drop), the Netherlands (1%) and Denmark (0.4%). In contrast, the highest inflation rates occurred in Hungary (9.6%), Czechia (9.5%) and Romania (8.3%).

In Spain, inflation grew in October to 3.5%, two tenths more than in September, but below the 7.3% reached in the tenth month of last year.

Among the main economies of the eurozone, the highest inflation was recorded in October 2023 in France (4.5%), followed by Germany (3%) and Italy (1.8%). Comparing with September, year-on-year inflation fell in twenty-two Member States and increased in five in October, according to Eurostat.