Brussels, 29/09/2006 (Agence Europe) - Under the effect of drops in crude oil prices, the inflation rate of the euro zone fell to 1.8% in September, having stood at 2.3% in August. Taken as an annual change, however, this reduction is also due to a base effect, as barrel prices had increased sharply in the same period last year. After a slight drop in August, the economic sentiment indicator for businesspeople and consumers went up again, rising by 1.6 points in the EU and by one point in the euro zone, to reach 111 and 109.3 points respectively. In the same way, after two months of drops, the business climate indicator in the euro zone took off again in September.
At the same time, market players anticipate a further increase in interest rates in the euro zone. The European Central Bank, which is to take position on 5 October at the meeting of the Council of Governors in Paris, remains concerned mainly by price stability in the medium term (EUROPE 9255).