In September, the inflation rate in the euro zone remained negative at -0.3 percent. In the previous month it had already been -0.2 percent. Energy prices once again contributed to the price reduction with a strong year-on-year decline. The rate of inflation for industrial goods was surprisingly weak following the postponement of the summer sales and fell again. In some countries, summer sales probably even extended into September, pushing prices down even further. The upward trend in prices for services, which are still plagued by corona, weakened once again. For food alone, consumers recently had to dig a little deeper into their wallets. The slowdown in the price of goods and services also affected the core rate, which fell from 0.6 to 0.4 percent in September
This picture is almost uniform in the large member states of the euro zone: overall, there is little or no pressure on prices. In France the inflation rate in September was 0.0 percent, in Germany -0.4 percent, in Spain -0.6 percent and in Italy even -0.9 percent.
What is the next step? Overall, the inflation trend in the EMU is likely to remain subdued at a low level close to zero until the end of 2020. The burdens from energy prices should gradually lose strength at the beginning of 2021 and expire. The weakness in service prices – especially tourism, accommodation and gastronomy – is likely to continue under the prevailing corona conditions. An already weak level of capacity utilization due to the existing distance offers is unlikely to allow higher sales prices. Against this backdrop, we do not expect to see stronger growth rates in