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Inflation data in Germany and Spain worrying for eurozone

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By Euronews
Inflation data in Germany and Spain worrying for eurozone

Driven by low energy costs, consumer prices in Spain fell at their fastest rate in seven months in September, according to early estimates from the country’s National Statistics Institute (INE).

EU-harmonised consumer prices fell 1.2 percent year-on-year – more than expected.

National prices also slipped again – by 0.9 percent on an annual basis.

Meanwhile retail sales continued to rise on the back of growing demand.

The overall trend for Spanish inflation for the last 21 months is once again negative.

Spanish consumer prices have held below two percent for 26 straight months, according to the country’s National Statistics Institute.

Early estimates in Germany show annual inflation there turned negative in September for the first time in eight months.

Reports say the weaker-than-expected reading could push the eurozone rate below zero, boosting the case for the European Central Bank (ECB) to take more action.

The EU-harmonised consumer index showed a decline of 0.2 percent year-on-year, while the national inflation yardstick showed zero change.

The figures come despite the ECB’s quantitative easing programme aimed at pushing inflation up to near two percent – the level it considers conducive to economic growth for the eurozone.

Final data in Germany based on all 16 regional states are due to be published on October 13.