Annual core inflation in the eurozone rose to 1.0% in September from 0.9% in the prior month, but analysts believe the outlook remains weak.
The latest print matched the consensus estimate for a 1.0% reading by economists polled by Econoday.
The measure, which excludes energy, food, alcohol and tobacco, advanced 0.4% on a monthly basis in September, according to preliminary data from Eurostat.
Recent wage growth has not translated into increased inflation as businesses have been reluctant to raise margins due to economic uncertainty, according to Bert Colijn, senior economist eurozone at ING. Colijn noted that as recession fears loom in the coming months, core inflation is unlikely to improve "significantly."
Inge Klaver, analyst at Nordea Markets, also predicted only gradual growth in core inflation during the remainder of the year, while saying that such growth will most likely not be enough to change the outlook for the ECB.
Annual headline price growth came in at 0.9% in September, down from 1.0% in August and well below the European Central Bank's inflation target of just under 2%. Annual energy prices dropped 1.8% in September after falling 0.6% in the previous month. Prices of food, alcohol and tobacco rose 1.6%, slower than the growth rate of 2.1% registered in August.
On a monthly basis, headline inflation edged up 0.2% in September.
On Sept. 12, the ECB downgraded its eurozone growth forecasts for 2019 and 2020, as it lowered the interest rate on its deposit facility and announced the resumption of bond purchases in a bid to boost economic activity and inflation.
Within the bloc, Germany's annual harmonized inflation slowed to 0.9% in September from August's growth rate of 1.0%. This marked the lowest level in nearly three years, according to a Sept. 30 release from the country's Federal Statistical Office.
Italy's harmonized inflation eased to 0.3% in September from 0.5% recorded in August.
