Eurozone: Inflation falls below ECB’s 2% target for first time since 2021 – UOB Group
|Preliminary figures showed that inflation in the Eurozone eased further to 1.8% in September, from 2.2% in August, as energy prices continued to decline. This marks the first time in three years that headline inflation has fallen below the European Central Bank's (ECB) 2%-3% target, UOB Group economist Lee Sue Ann notes.
Energy prices continue to decline
“Eurozone inflation fell to 1.8% in September, from 2.2% in August, coming in below the ECB’s 2% target, according to preliminary data. Core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, came in at 2.7%.”
“While we are cognizant that the risk of a rate cut in October certainly seems more likely than before, we maintain our view of the ECB cutting again only when policymakers convene in December for the final time this year.”
“We think that the widely watched services inflation, which eased slightly only to 4.0% in September, from 4.1% in August, is still high for the ECB. Furthermore, inflation dynamics are quite different across Eurozone countries.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.