Eurozone Inflation Falls to 1.8%, Below ECB's Target

Lower energy prices and sluggish economic growth may prompt the ECB to cut interest rates sooner than expected.

Inflation in the eurozone dropped to 1.8% in September, below the European Central Bank's 2% target for the first time since June 2021.
The decline in inflation is largely attributed to a significant fall in energy prices, which decreased by 6% in September.
Economists are now considering the possibility of an interest rate cut at the ECB's upcoming meeting on October 17, earlier than previously anticipated.
The eurozone economy grew by only 0.3% in the second quarter, with consumer spending remaining weak amid ongoing global conflicts and economic uncertainties.
ECB President Christine Lagarde emphasized that future rate decisions will be data-dependent, noting that some underlying inflation measures, like services prices, remain elevated.