Eurozone: September inflation to slow further to 2.01% y/y – Danske Bank

Analysts at Danske Bank point out that after the euro area headline inflation fell to 2.05% y/y, they expect the September print to slow further to 2.01% y/y, still driven by a lower contribution from both food and energy prices.

Key Quotes

“Although we saw negotiated wages pick up in Q2, core inflation disappointed at 0.96% y/y in August from 1.07% y/y in July and we expect September's figures to linger at 0.97% y/y, as the feed through from higher wages materialises only gradually. However, there might be upside to today's number after the higher-than-expected German inflation number yesterday.”