The annual inflation rate in the Euro area has noted a significant drop to 2.9% in October 2023, down from 4.3% in September, according to Eurostat’s flash estimate. This decrease is attributed to fluctuating trends across Consumer Price Index (CPI) components.
In October, major inflation contributors such as food, alcohol, and tobacco were estimated at 7.5%, marking a decrease from the previous month’s 8.8%. Services and non-energy industrial goods are also expected to register marginal declines, projected at rates of 4.6% and 3.5% respectively.
In addition to these changes, the energy market is anticipated to see substantial shifts in prices due to various challenges. The annual rate for energy is expected to experience a drastic change to -11.1% in October, compared to -4.6% in September.
Meanwhile, Eurostat’s preliminary flash estimate for Q3 2023 has revealed mixed GDP dynamics across the Euro area and EU. The Euro area recorded a GDP contraction of 0.1%, contrasting with the EU which experienced growth of 0.1%. This is a shift from Q2 2023 when the Euro area saw a 0.2% growth while the EU’s GDP remained stable.
These figures indicate an overall economic trend of slowdown in the Euro area, whereas the EU continues on a slow but steady growth trajectory.
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