Euro zone inflation slowed more than previously estimated in September, according to revised official data released today, hours before the European Central Bank cut interest rates again.
Year-on-year consumer price increases in the single currency area slowed to 1.7% last month, a slight change from the 1.8% figure published on October 1, according to the EU’s Eurostat data agency.
The rate is below the ECB’s 2% target for the first time in more than three years.
The ECB’s focus is now on tackling weaker economic growth in the 20-country euro zone as inflation appears to be under control since consumer prices soared in the wake of the coronavirus pandemic and Russia’s invasion of Ukraine.
The Frankfurt-based ECB aggressively raised rates to rein in red-hot inflation, which hit a peak of 10.6% in October 2022.
But as the worst appears to be over, policymakers have already twice cut rates this year with another expected later today as the ECB governing council gathers in Slovenia.
The inflation rate’s slowdown in September was thanks to falling energy costs.
The euro zone, however, has recorded weak growth in recent months.
According to the ECB’s own forecasts published last month, growth would slow to a meek 0.2% in the third quarter and 0.8% in the whole of 2024.
Article Source – Euro zone inflation revised down to 1.7% in September – RTE
