Annual inflation rate falls to 2.9 per cent

The annual inflation rate fell from 4.3 per cent to 2.9 per cent, according to a second estimate released by the statistics office Eurostat in Luxembourg on Friday. With the decline in October, the inflation rate in the single currency area is back below the three per cent mark for the first time since summer 2021. Core inflation, which excludes volatile prices for energy and food, also declined.

Although food and luxury foods were still significantly more expensive than a year ago, the price increase slowed from 8.8 per cent to 7.4 per cent. Prices for services rose only slightly less than in the previous month. Energy prices fell by 11.2 per cent in October compared to the same month last year.

Inflation trends continued to vary greatly in the individual eurozone countries. The highest annual rate was recorded in Slovakia at 7.8 per cent. In Belgium (-1.7 per cent) and the Netherlands (-1.0 per cent), prices fell year-on-year. Inflation in Germany was 3.0 per cent.