Pansen Macro: Inflation in France and Spain becomes the focus of the European Central Bank's interest rate cut in October

The September 27th data from Golden Ten News, Claus Vistesen, a macroeconomist at Pantheon Macroeconomics, said that the inflation rates in France and Spain have dropped significantly this month. If these data can represent the entire eurozone, then European Central Bank policymakers who support further interest rate cuts will be in a favorable position to push for a third rate cut next month. The most notable detail in the French inflation data is that the inflation rate for manufactured goods has dropped from -0.1% in August to -0.3%, which is a significant downward surprise, especially considering that the base effect implies that a good rebound in commodity inflation should occur. The October interest rate cut by the European Central Bank is a new benchmark expectation, but it will only have greater certainty after the eurozone inflation data is released on Tuesday.