Inflation in the Eurozone is approaching the 2% target.

Inflation in the Eurozone Approaches Target

In the Eurozone, the annual inflation showed a mild decline in October, approaching the 2% target, while the European Central Bank (ECB) supported its decision to keep interest rates at the current level.

Consumer Price Increase Rate

Consumer prices increased by 2.1% in October compared to the previous year. Economists participating in a Bloomberg survey had expected inflation to be at this level.
In September, consumer prices were recorded to have risen by 2.2%.

Core Inflation Data

During the same period, core inflation remained unexpectedly at 2.4%, aided by a 3.4% acceleration in the closely monitored services component.

Expert Opinions

Commerzbank Chief Economist Joerg Kraemer stated, "At first glance, the inflation problem in the Eurozone seems to be resolved. However, core inflation prevents the ECB from lowering interest rates further."

Future Expectations

The ECB forecasts that inflation will drop below 2% next year and will regain momentum near the target in 2027. The new quarterly forecasts to be announced in December will include 2028 for the first time. This could reignite the debate on whether monetary expansion is necessary.