FRANKFURT: The inflation burden affecting Europeans fell sharply in September to its lowest level in two years, boosting hopes that consumers will get relief from more expensive groceries, holidays and haircuts – and that the European Central Bank (ECB) there is no need to further limit inflation in the economy by raising interest rates from an already record high.
The annual rate was 4.3% this month, down from 5.2% in August, and the lowest since October 2021, the European Union statistics agency said. Eurostat, said Friday. But oil prices have risen recently cas This casts a shadow over the prospects for quickly reducing inflation to the central bank’s 2% target. Core inflation, which excludes volatile fuel and food prices, fell more than analysts expected – from 5.3% to 4.5%. The ECB monitors this figure to assess how inflation is falling.
The fall in core inflation “reinforces our view that the ECB is done raising rates,” said Jack Allen-Reynolds, deputy chief economist for the euro zone at Capital economics. He said headline inflation would fall to 3.5% by the end of the year.
The annual rate was 4.3% this month, down from 5.2% in August, and the lowest since October 2021, the European Union statistics agency said. Eurostat, said Friday. But oil prices have risen recently cas This casts a shadow over the prospects for quickly reducing inflation to the central bank’s 2% target. Core inflation, which excludes volatile fuel and food prices, fell more than analysts expected – from 5.3% to 4.5%. The ECB monitors this figure to assess how inflation is falling.
The fall in core inflation “reinforces our view that the ECB is done raising rates,” said Jack Allen-Reynolds, deputy chief economist for the euro zone at Capital economics. He said headline inflation would fall to 3.5% by the end of the year.
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