In September 2024, the annual inflation rate in the euro area dropped to 1.7%, a decline from 2.2% in August and significantly lower than the 4.3% recorded in September 2023, according to Eurostat, the EU’s statistical office.
In September 2024, the annual inflation rate in the euro area dropped to 1.7%, a decline from 2.2% in August and significantly lower than the 4.3% recorded in September 2023, according to Eurostat, the EU’s statistical office. Similarly, the annual inflation rate in the broader European Union fell to 2.1%, down from 2.4% in the previous month, and sharply lower compared to the 4.9% rate seen a year earlier.
Among member states, the lowest annual inflation rates were observed in Ireland (0.0%), Lithuania (0.4%), and both Slovenia and Italy (0.7%). On the other hand, Romania recorded the highest inflation at 4.8%, followed by Belgium at 4.3% and Poland at 4.2%. Between August and September 2024, inflation decreased in twenty EU member states, remained unchanged in two, and increased in five.
For the euro area, services were the primary contributor to the annual inflation rate, adding +1.76 percentage points. Food, alcohol, and tobacco followed, contributing +0.47 percentage points, while non-energy industrial goods added +0.12 percentage points. Energy, on the other hand, had a negative impact, subtracting -0.60 percentage points from the overall inflation rate.
Global markets remained focused on U.S. fiscal concerns, shifting central bank expectations, and renewed Middle East tensions.
Fed Inflation Concerns RemainThe latest Federal Reserve minutes show that inflation remains a central concern for policymakers, even as recent economic data has reduced the urgency for another rate increase. Some officials believe price pressures are becoming more widespread, while a smaller group directly supported further tightening.
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Dollar Falls on Debt Concerns as Yields Rise (24 – 28 August)Global markets entered the week with the US dollar under continued pressure as concerns over federal debt and Treasury market management moved to the center of investor attention. The Dollar Index hovered near 98.8 following sharp losses in the previous week, while the US Treasury’s expanded bond buyback programme pushed longer-term yields and the dollar lower. The move supported gold, silver, and major currencies, while investors assessed its longer-term implications for US borrowing costs and the yield curve.
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