Annual Inflation in the Euro Area Drops to 1.7% in September 2024

Inflation data from Eurostat revealed a marked decrease in annual inflation across the euro area, with rates dropping to 1.7% in September 2024, down from 2.2% in August. In comparison, the inflation rate stood at 4.3% during the same month in 2023. The European Union as a whole also saw a decline, with inflation falling to 2.1% in September from 2.4% in August, showing significant progress from the 4.9% reported a year earlier.

Among EU countries, the lowest inflation rates were recorded in Ireland (0.0%), Lithuania (0.4%), Slovenia, and Italy (both 0.7%). Meanwhile, Romania (4.8%), Belgium (4.3%), and Poland (4.2%) experienced the highest inflation rates. Notably, inflation decreased in twenty member states, stayed the same in two, and rose in five.

The main contributors to the euro area’s inflation rate were services, adding +1.76 percentage points, followed by food, alcohol, and tobacco (+0.47 pp), and non-energy industrial goods (+0.12 pp). However, energy prices saw a significant reduction, contributing -0.60 percentage points to the inflation rate.