Euro inflation negative also in September

Consumer prices continue to fall. Reason is above all an area.

The consequences of the corona crisis can also be seen in the price development.

Dhe consumer prices in the monetary union fell again in September. They fell within a year by 0.3 percent, as the European statistical agency Eurostat announced on Friday after an initial estimate.

The fall in prices was mainly driven by energy. In August consumer prices were down 0.2 percent. It was the first time since 2016 that inflation slipped into the red.

For the European Central Bank (ECB), this could increase concerns. For this year it is only assuming an inflation rate of plus 0.3 percent. The monetary authorities are aiming for just under two percent inflation as the optimum value for the economy. But this mark has been missed for years.

Energy was 8.2 percent cheaper in September. The prices of non-energy industrial goods fell 0.3 percent. In contrast, unprocessed foods in particular became more expensive. They cost 3.1 percent more than a year ago. Services rose by 0.5 percent.

ECB President Christine Lagarde recently complained that the central bank was not satisfied with the situation and that its inflation target of almost two percent would be missed. However, it has proven in the past that it can successfully readjust its instruments.