Eurozone CPI, 1.8% on year-on-year

Consumer Prices index in the countries belonging to the monetary union grew 1.8% in September, according to a report published by the European Union´s statistics office, Eurostat.For the first time since January 2005, consumer price inflation fell below 2%. September reading on inflation is the last of three consecutive months to register decreases on the CPI, inflation in August was 2.3%, and slightly lower than the 1.9% forecasted by the analysts.This marks a sharp slow-down on inflation from levels recorded earlier this year and meets the European Central Bank´s expectations to maintain inflation below the 2% for the next 12 months.The ECB has already raised interest rates four times since December 2005 to dampen inflation and this decrease on inflation might prevent future rate hikes.

Euro zone economic sentiment indicator jumps unexpectedly to 109.3 in Sept

The European Commission's euro zone economic sentiment indicator jumped unexpectedly to 109.3 in September from an upward revised 108.3 in August. Economists polled by AFX News had forecast a fall in the indicator to 106.3. The commission's original estimate for August was 106.7. The industrial confidence component of the indicator rose to 4 from 2, while consumer confidence improved to minus 8 from minus 9. Economists had forecast 1 for industrial confidence and minus 8 for consumer confidence. Confidence in the services sector eased to 18 from 21, but the retail trade posted a rise to 3 from 1 and construction edged up to 4 from 2. The commissions euro zone business climate indicator rose to 1.46 in September from 1.25 in August. The commission attributed the upturn to "marked increases in industry managers' production expectations for the months ahead and in their assessment of the production trend observed in recent months".