Eurozone inflation falls below 2% in Sept, boosting rate cut hopes

(Sharecast News) - Eurozone inflation fell below the European Central Bank's 2% target for the first time since 2021, boosting hopes of further interest rate cuts in the single currency bloc. A flash estimate from European Union statistics body Eurostat said annual inflation across the euro area was 1.8% in September 2024, down from 2.2% in August.

A sharp fall in energy costs was the main driver, with prices down 6%, meaning they were lower than September last year. Services inflation edged down to 4% from 4.1% in August, while food, alcohol & tobacco inflation rose to 2.4% from 2.3%.

Reporting by Frank Prenesti for Sharecast.com