Fresh inflation figures provided a pleasant surprise.
** ECB Vice President Luis de Guindos was quite delighted by the recent inflation figures. He referred to them as encouraging during his conversation with Radio Intereconomia last Friday.**
By the close of 2025, the desired level of price stability might be achieved. Nevertheless, it's premature to celebrate the defeat of inflation. The economic landscape continues to be marred by potential hazards. The inflation rate in the Eurozone dipped to 1.8% in September, marking the lowest point in over three years. This development could potentially prompt the European Central Bank (ECB) to loosen monetary policy this month and lower interest rates once more.
For the first time since mid-2021, inflation has dipped below the ECB's desired 2% threshold, which they regard as optimal for the economy in the Eurozone over the long term. ECB Executive Board member Isabel Schnabel has expressed optimism that inflation could consistently reach the ECB's target level.
The dip in inflation rate to 1.8% in September, as mentioned, is a positive trend in the inflation data. Furthermore, this decrease could influence the ECB's decision regarding monetary policy adjustments.
