Inflation remained stable in October

Cyprus's inflation rate is expected to remain constant at 1.6% in October 2024, the same level as in September. This number is based on the most recent data from Eurostat's preliminary estimates, which were made public. They also show a notable decline from the 3.6% annual inflation rate recorded in 2023.

October inflation in the euro area is expected to be around 2%, which is a modest an increase from September's 1.7% rate. This brings the region closer to the 2% inflation objective set by the European Central Bank (ECB). In an effort to bring inflation closer to this goal, the ECB just carried out its third interest rate drop of the year.

Within the eurozone, inflation is primarily driven by several sectors: the services sector, which reached an annual inflation rate of 3.9%, food, alcoholic beverages, and tobacco, which rose to 2.9% from September’s 2.4%, non-energy industrial products, which slightly increased to 0.5%, and energy, which, while still in negative territory, moved up to -4.6% from -6.1%. Notably, the services sector recorded the highest inflation among these categories.

Across Europe, Slovenia is expected to record the lowest inflation rate in October at 0%, followed by Ireland and Lithuania at 0.1%. On the other end of the spectrum, Belgium is projected to have the highest inflation rate at 4.7%, with Estonia, Croatia, and Slovakia also showing higher rates at 4.5% and 3.5%, respectively.