Inflation in the euro zone has eased slightly from expectations in September, raising expectations that the European Central Bank will cut interest rates by a quarter of a percentage point later today.
Eurostat's final data released on Thursday showed the harmonized index of consumer prices rose at an annual rate of 1.7% in September, revised down from the 1.8% forecast on October 1. A month ago, the inflation rate was 2.2%.
Inflation fell below the 2% target for the first time since June 2021.
Core inflation, which excludes prices for energy, food, alcohol and tobacco, was estimated at 2.7%, slowing from 2.8% a month earlier.
On a monthly basis, HICP fell 0.1%, in line with expectations.
Among the components of HICP, energy prices fell by 6.1% annually, following a 3.0% decline in August.
Food, alcohol and tobacco prices rose slightly faster, at 2.4%, after rising 2.3%. Meanwhile, the service inflation rate slowed to 3.9% from 4.1%. The rate of increase in non-energy industrial product prices remained flat at 0.4%.
The European Central Bank is widely expected to cut its key interest rate later today as concerns grow over the growth outlook amid falling inflation. The central bank is expected to cut its key interest rate by 25 basis points after making a similar cut last month.
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