€-inflation details – price pressure for services falls
Today's published details on the October inflation reading confirm a low month-over-month rate of core inflation of around 0.2%.
Commerzbank Economic Research
11/19/2024
Details confirm low core rate
According to the final figures from Eurostat and the ECB, core consumer prices rose by only 0.22% in seasonally adjusted terms in October as compared to September. This means that core inflation was lower than the average of the previous three months. Our analyses show that core inflation could, in fact, be even lower. If we use an alternative seasonal adjustment procedure that would have led to less fluctuation in the core rate in recent months, core inflation measured on a month-on-month basis falls slightly to 0.20%. If the rate is also adjusted for particularly volatile components of services inflation (such as transport services), the previous month's core inflation rate would be only 0.15%. In the following sections, we discuss the details of these adjustments.
For full text see attached PDF-Version.
