Eurozone September Inflation Revised Down to 1.7%

The slowdown in consumer price increases comes as the European Central Bank is expected to cut interest rates.Year-on-year inflation in the eurozone slowed to 1.7% last month, slightly lower than previously estimated, according to official data published Thursday.

Also Read | Bihar Hooch Tragedy: CM Nitish Kumar Conducts High-Level Review, Orders Investigation Into Spurious Liquor Deaths in Siwan and Saran.

It is the first time in more than three years that the inflation rate in the single currency area has fallen below the European Central Bank's (ECB) target of 2%.

Also Read | Nayab Singh Saini Sworn In As Haryana CM: OBC Leader Takes Oath as Chief Minister for Second Time (Watch Video).

The new data was released hours ahead of an expected rate cut by the ECB.

The slowdown of the September inflation rate was due to changing energy costs, which fell by 6.1% compared to the same month last year.

Consumer prices soared in the wake of the coronavirus pandemic and Russia's invasion of Ukraine, with inflation peaking at 10.6% in October 2022. That prompted the ECB to aggressively raise rates. But the bank's policymakers have already cut rates twice this year in response to the easing situation.

The Frankfurt-based ECB's focus is now shifting to dealing with weak economic growth in the 20-country eurozone. According to the institution's own forecasts published last month, growth is expected to slow to 0.2% in the third quarter and 0.8% in the whole of 2024.

nm/wmr (Reuters, AFP)

(The above story first appeared on LatestLY on Oct 17, 2024 03:10 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).