Central Banks
Euro-Zone Inflation Drops Below 2%, Backing ECB Cut Bets
- September consumer prices rose 1.8% from year ago, as expected
- Investors are increasingly certain of another cut this month
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Euro-area inflation slowed below the European Central Bank’s 2% target for the first time since 2021 — backing investor bets that interest rates may be lowered more quickly than previously anticipated.
Consumer prices rose 1.8% from a year ago in September, down from 2.2% in the previous month as energy costs fell sharply, Eurostat said Tuesday. The reading matched a Bloomberg survey of analysts — as was core inflation, which eased to 2.7%.