According to the Eurostat agency, the Eurozone’s Consumer Price Index for September stood at 0.5% (month-on-month), remaining in line with expectations and above the previous month's 0.4%. In yearly terms, the CPI was also in line with expectations at 3.4%, and unchanged from the previous month's figure.
Excluding food and energy prices, the CPI stood at 1.9% annualized, in line with expectations and unchanged from August’s figure. In monthly terms, the Core CPI stood at 0.5% in September, in line with expectations and unchanged from August.
The United Kingdom's Office for National Statistics reported that the country’s CPI stood at 0.3% in September (month-on-month), below expectations of 0.4% and August’s 0.7%. In annual terms, the CPI stood at 3.1%, below expectations of 3.2% but unchanged from August.
Excluding food and energy prices, the CPI stood at 2.9%, below expectations of 3% and the previous month’s 3.1%. The Retail Price Index stood at 0.4% in September, above expectations of 0.2% but below the previous month’s 0.6%.
In the case of the UK, energy and food prices are the main factors that are pushing up the cost of living, and they're expected to increase further in the coming winter months.
Given these figures, and taking into account that this sudden moderation in the price levels is considered temporary by analysts, it is highly likely that both the ECB and the Bank of England will consider hiking cash rates.
"We expect further increases in inflation from October, which could reach around 4% by the end of the year, with the recent rise in wholesale energy prices passed on to households," commented an analyst at the KPMG United Kingdom.
By 11:55 GMT, the euro dropped by 0.06% against the US dollar, falling to the 1.1625 level. Similarly, the British pound dropped by 0.35%, falling to the 1.3747 level.