According to the report from Eurostat, the euro area annual inflation rate was -0.3% in October 2020, stable compared to September. A year earlier, the rate was 0.7%. European Union annual inflation was 0.3% in October 2020, stable compared to September. A year earlier, the rate was 1.1%. Core CPI rose by 0.2% y/y versus +0.2% previous and +0.2% expectations. On a monthly basis, core CPI arrived at 0.1% versus 0.2% expected and -0.1% last.

The lowest annual rates were registered in Greece (-2.0%), Estonia (-1.7%) and Ireland (-1.5%). The highest annual rates were recorded in Poland (3.8%), Hungary (3.0%) and Czechia (2.9%). Compared with September, annual inflation fell in fifteen Member States, remained stable in two and rose in ten.

In October, the highest contribution to the annual euro area inflation rate came from food, alcohol & tobacco (+0.38 percentage points, pp), followed by services (+0.19 pp), non-energy industrial goods (-0.03 pp) and energy (-0.81 pp).