ECB Rate-Cut Bets Jump as France, Spain Inflation Sinks Below 2%
- Prices rose 1.5% in France in September, 1.7% in Spain
- Markets now see 80% chance of rates being lowered in October
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Inflation in France and Spain plunged below 2% — fueling predictions by investors and economists that the European Central Bank will speed up the pace of interest-rate cuts.
Data Friday showed consumer prices in France rose 1.5% from a year ago in September — sinking below 2% for the first time in more than three years mainly due to falls in energy costs. Spain saw a similar trend, with inflation easing to 1.7% on fuel, power and food.