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Underlying Inflation Takes Further Step Lower In October (1/2)

EUROZONE DATA
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The ECB's underlying inflation metrics have been updated for the final Eurozone October HICP readings, and show further signs of disinflation.

  • The overall PCCI (Persistent and Common Component of Inflation) index was 2.46% Y/Y, ending 3 months of stickiness at the 2.65% level.
  • PCCI ex-energy and food ticked down 0.1pp from September to the lowest since November 2021, printing at 2.01% Y/Y.
  • The other underlying measures calculated by the ECB (Supercore, Weighted Median and 10/30% trimmed mean) also fell vs September.
  • The 10% trimmed mean fell most markedly to 4.1% Y/Y (vs 4.9% prior).
  • Given that the 30% trimmed mean fell more moderately to 4.5% (vs 4.9% prior), it indicates that the skew of outlying observations are much more favourable to the downside vs the upside (though this is most likely due to the effect of volatile energy components bunching together at low/negative levels).



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The ECB's underlying inflation metrics have been updated for the final Eurozone October HICP readings, and show further signs of disinflation.

  • The overall PCCI (Persistent and Common Component of Inflation) index was 2.46% Y/Y, ending 3 months of stickiness at the 2.65% level.
  • PCCI ex-energy and food ticked down 0.1pp from September to the lowest since November 2021, printing at 2.01% Y/Y.
  • The other underlying measures calculated by the ECB (Supercore, Weighted Median and 10/30% trimmed mean) also fell vs September.
  • The 10% trimmed mean fell most markedly to 4.1% Y/Y (vs 4.9% prior).
  • Given that the 30% trimmed mean fell more moderately to 4.5% (vs 4.9% prior), it indicates that the skew of outlying observations are much more favourable to the downside vs the upside (though this is most likely due to the effect of volatile energy components bunching together at low/negative levels).