(Reuters) – German inflation fell in September to its lowest level since February 2021, preliminary data published on Monday by the Federal Statistical Office showed, which should strengthen the case for a further fall in inflation. interest rate by the European Central Bank (ECB) next month.
Over one year, the consumer price index, in its HICP version, which allows comparison between euro zone countries, stood at 1.8% after an increase of 2% in August and a consensus of economists at 1.9%.
Core inflation, which excludes volatile food and energy prices, slowed to 2.7% in September, compared to 2.8% in August.
Over one month, HICP inflation fell by 0.1% in September, after a fall of 0.2% a month before and a consensus which expected it to be stable.
Economists are closely monitoring German inflation data because Germany, the euro zone’s largest economy, releases its figures a day before those of the entire bloc.
Analysts polled by Reuters expect euro zone inflation to slow further to 1.9% in September, from 2.2% the previous month.
Inflation has already decelerated in Spain and France, two other major eurozone economies.
However, the ECB already expected low inflation in September, mainly due to the high base effect of energy prices a year ago, and warned that price rises could start again within months future.
(Reporting Rachel More and Friederike Heine, Diana Mandiá, editing by Kate Entringer)
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