Euro zone inflation fell to 1.8% in September, below the European Central Bank’s 2% target, according to Eurostat data. The core inflation rate, excluding volatile prices, remained at 2.7%. Services inflation in the euro zone eased to 4% in September. Several key euro zone economies experienced lower inflation rates, below the 2% target set by the European Central Bank.
Experts predict a temporary rebound in inflation but expect it to remain below 2% in the coming year. European Central Bank President Christine Lagarde stated confidence in inflation returning to the 2% target. The ECB’s next monetary policy meeting is set for October 17.
The possibility of the ECB cutting rates in October is being considered due to concerns about economic growth and inflation falling below the 2% target. Bank of America Global Research economists and Deutsche Bank economists have adjusted their forecasts for a rate cut in October based on recent developments.
