Eurozone inflation dips below ECB target for the first time in over three years

Down to 1.8% in September

Inflation in the eurozone has fallen below the European Central Bank’s 2% target for the first time in three years, paving the way for a potential rate cut at its next meeting.

According to flash estimates from the European Union's statistics office Eurostat today (1 October), inflation in the euro area fell to 1.8% in September, down from 2.2% in August, matching forecasts by a Reuters poll of economists. Core inflation, which strips out energy, food, and tobacco, eased slightly from 2.8% in August to 2.7% in September. ECB cuts interest rates to 3.5% amid softer inflation figures and faltering growth Services inflation fell to 4% last month from 4.1% in August, while food, alcohol and tobacco prices ticked up slightly to 2.4% from 2.3%. Non-energy indus...