Inflation fell below the ECB’s target of 2 percent for the first time in more than three years.
Inflation in the eurozone dropped to 1.8 percent in September which could lead to faster interest rate cuts from the European Central Bank (ECB).
Inflation fell below the ECB’s target of 2 percent for the first time in more than three years.
The decline has been driven primarily by falling energy prices and offers some respite for consumers following a period where inflation soared into double digits.
This latest official figure, released on Tuesday, along with the region’s sluggish economic growth outlook, could accelerate the ECB’s pace of interest rate cuts.
The central bank has already reduced rates twice in response to the changing economic environment.
Eurostat, the European Union’s statistics agency, reported that inflation fell from 2.2 percent in August.
The last time inflation was at the ECB’s 2 percent target was in June 2021, when it stood at 1.9 percent.
With inflation easing, economists are now contemplating the possibility of a rate cut at the ECB’s upcoming meeting on October 17.
