Economists: Inflation in France and Spain Becomes the Focus of the European Central Bank's Rate Cut in October

ChainCatcher news, Pantheon Macroeconomics economist Claus Vistesen stated that inflation rates in France and Spain have significantly decreased this month. If this data can represent the entire Eurozone, then European Central Bank policymakers supporting further rate cuts will be in a favorable position to push for a third rate cut next month.

The most striking detail in the French inflation data is that the inflation rate for manufactured goods dropped from negative 0.1% in August to negative 0.3%, which is a significant downside surprise, especially considering that the base effect suggests that good commodity inflation should rebound. The ECB's rate cut in October is the new baseline expectation, but a greater certainty for the rate cut will only come after the Eurozone inflation data is released on Tuesday. (Jin Ten)