Flash HICP (Sep 2019).................>

EUROZONE DATA: Flash HICP (Sep 2019)

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- EZ flash HICP eased by 0.1pp to 0.9% in Sep, the lowest since Nov 2016, in

contrast to markets pencilling in an unchanged read. 

- Y/Y HICP recorded 1.0% for two consecutive months prior to slowing in Sep 

- Core infl (HICP ex. energy, food, alcohol & tobacco) accelerated slightly to

1.0% after 0.9% for two months straight. 

- Sep's uptick in core inflation was mainly led by an increase in service price

inflation (up 0.2pp to 1.5%) 

- Prices for food, alcohol & tobacco decelerated by 0.5pp to 1.6% in Sep 

- While non-energy industrial goods prices remained unchanged at 0.3%, energy

inflation saw the largest decline, dropping by 1.2pp to -1.8% 

- Inflation has sat below the ECB's target of 2.0% since Oct 2018 and is

unlikely to strengthen significantly in the coming months. 

- As uncertainty regarding global economic growth persists, companies are

finding it difficult to pass on their higher wages costs to consumers.