The final reading of the September CPI inflation indicator in the EU for September was 1.7 percent year on year and is lower than the preliminary reading by 0.1 percentage point. and lower than the August reading by as much as 0.5 percentage points.
Furthermore, the final reading on a monthly basis was -0.1 percent, confirming earlier deflationary forecasts and is a decrease of 0.2 percentage points compared to the reading from the previous month.
The picture emerging from these data should reassure the ECB in continuing the cycle of interest rate cuts. Negative surprises, although small in this case, could translate into a faster-than-expected pace of interest rate cuts, which in turn may affect the weakening of the EUR and lowering the profitability of bonds in the Eurozone. The coming days may be interesting in these segments.
Piotr Bawolski, Director of Strategic Clients at Michael / Ström Dom Maklerski
Source: https://ceo.com.pl/wrzesniowy-odczyt-inflacji-cpi-w-ue-jest-nizszy-od-wstepnego-odczytu-65812
