Euro Area inflation remains pale in September

The Euro area flash estimate for headline inflation has declined from 1.0% to 0.9% in September. Conversely the core index excluding, energy and unprocessed food, has improved by 0.1 pp to 1.2% YoY. At this stage, while core inflation has been oscillating between 0.8% and 1.2% since May, with no clear trend in a sense or another, it remains hard to conclude that inflation is converging towards ECB’s target .