Eurozone inflation increased in September as the consumer price index rose to 0.5 per cent from August's 0.1 per cent, in line with expectations.
Year-on-year, September saw an expected 1.1 per cent rise – broadly stable after August 2012 to August 2013's 1.3 per cent increase and the lowest level since February 2010.
This is welcome news for Eurozone consumers as it helps their purchasing power and it also means that the ECB can at the very least maintain its extremely accomodative policy for an extended period and actually has ample scope to take further stimulative action if it feels the need.
September’s drop in consumer price inflation was largely due to lower energy prices year-on-year while there was also an appreciable moderation in food price inflation. Furthermore, already muted core Eurozone inflation edged lower.