Inflation across the European Union (EU) rose an annualized 2.2% in September.
The latest data shows that inflation remains close to the European Central Bank’s (ECB) target of 2%, providing few reasons to further ease monetary policy across the economic bloc.
However, inflation in September did tick up from 2% a year earlier. Month-over-month, consumer prices gained 0.1% from August of this year.
Stripping out more volatile food and energy price, so called core inflation rose an annualized 2.4% in September, up from 2.3% in August.
The European Central Bank has cut interest rates by two percentage points this year but has been on hold since June, arguing that inflation is sufficiently close to its 2% annualized target.
Economists widely expect the central bank to keep rates unchanged again at its next meeting at the end of October.
Current projections from the ECB have inflation dipping to 1.7% in 2026 as the Eurozone weakens under the weight of U.S. tariffs and a slowdown in consumer spending.
Europe is grappling with a softening of its two largest economies, Germany and France. The ongoing war in Ukraine is also weighing on the European economy, say analysts.
