Key Contributors to Inflation Drop: Energy Prices
According to Eurostat,
The Eurozone's core inflation rate eased from 2.8% in August to 2.7% in September. Analysts expected the core inflation rate to remain at 2.8% in September.
Notably, core inflation eased to the lowest rate since February 2022.
The softer-than-expected annual inflation rate could boost speculation about an October ECB rate cut. Significantly, the ECB has two monetary policy meetings remaining in 2024, the first being on October 17, while the second is scheduled for December 12.
A 25-basis point October ECB interest rate cut could pave the way for a 25-basis point December rate cut.