Falling Energy Prices Drive Eurozone Inflation Below 2% Goal

Eurozone inflation fell below the two per cent target for the first time since mid-2021, paving the way for the European Central Bank (ECB) to cut interest rates again this month. Annual inflation fell to 1.8 per cent in September, down from 2.2 per cent in August and below the 1.9 per cent expected by economists.

Falling energy prices were the largest contribution to the lower headline rate, with energy prices falling six per cent in the year. But the release also showed signs of progress on measures of underlying inflation. Core inflation, which…