The annual inflation rate in the Eurozone dropped in September to its lowest level in three and a half years, according to official data released on Tuesday, falling below the European Central Bank’s (ECB) target of two percent and boosting expectations of a rate cut.
Consumer price growth in the single currency area slowed to 1.8 percent in September, down from 2.2 percent in August, thanks to a decline in energy costs.
The inflation rate for the 20-country Eurozone was the lowest since April 2021 and exceeded analysts’ expectations of 1.9 percent, as surveyed by financial data company FactSet.
However, core inflation, which excludes the volatile prices of energy, food, alcohol, and tobacco and is a key indicator for the ECB, slightly eased to 2.7 percent in September from 2.8 percent in August, the European Union’s (EU) official statistics agency reported.
ECB President Christine Lagarde said on Monday that policymakers would consider the new inflation data “at our next monetary policy meeting in October.”
