Provisional consumer prices were just slightly weaker than expected in September. However, a 0.1 percent monthly increase was still enough to hold the annual inflation rate unchanged at 1.8 percent, matching both the market consensus and its highest reading since April.
The flash HICP was flat at its August level, in turn leaving its yearly rate steady at also 1.8 percent.
Not so promisingly, the stability of the annual CPI reading masked positive effects from both food and energy, the rate for the former up from 3.0 percent to 3.6 percent and for the latter from 2.3 percent to 2.7 percent. Overall goods inflation climbed 0.2 percentage points to 2.2 percent but services were only flat at 1.6 percent and rent, excluding utilities stable at 1.7 percent.
Today's German report increases the chances that tomorrow's full Eurozone release could show the region's core inflation edging a tick softer. This would probably not be enough to dissuade the ECB from a monetary recalibration next month but it would bolster the likelihood of any QE tapering being only mild.