Inflation & Prices

German Inflation Slows Below 2% as ECB Rate-Cut Bets Rise

  • Consumer-price growth eased to 1.8% in September, as expected
  • Markets are betting on a third rate reduction in October

Shoppers at a street market at the Alexanderplatz in Berlin, Germany.

Photographer: Krisztian Bocsi/Bloomberg
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German inflation eased below the European Central Bank’s 2% target for the first time since February 2021 — supporting the case for another cut in interest rates in less than three weeks.

Consumer-price growth in Europe’s largest economy slowed to 1.8% in September from 2% the previous month – in line with the median estimate in a Bloomberg survey. The retreat was down to energy and some goods costs, according to statistics agency Destatis.