Inflation in the Eurozone decreased slightly more than initially projected for September, increasing anticipation for a quarter-point rate reduction by the European Central Bank later today.
The harmonized index of consumer prices recorded an annual rise of 1.7 percent in September, revised from the earlier estimate of 1.8 percent on October 1, according to final data released by Eurostat on Thursday. Last month, inflation was at 2.2 percent.
This marks the first time inflation has dipped below the 2 percent target since June 2021.
When excluding energy, food, alcohol, and tobacco prices, core inflation decreased to 2.7 percent, as anticipated, down from 2.8 percent the previous month.
On a month-to-month basis, the HICP fell by 0.1 percent, consistent with estimates.
Within the HICP components, energy prices plummeted by 6.1 percent year-over-year, following a 3.0 percent decline in August.
Food, alcohol, and tobacco prices increased at a slightly higher rate of 2.4 percent, compared to a 2.3 percent rise previously. In contrast, services inflation decreased to 3.9 percent from 4.1 percent. The price increase for non-energy industrial goods remained stable at 0.4 percent.
Later today, it is widely anticipated that the European Central Bank will reduce its key interest rates due to heightened concerns regarding the growth outlook amid falling inflation. The bank is projected to implement a 25 basis point cut, following a similar reduction last month.
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