Oil prices are rising and retailers’ summer sales are ending, yet most economists expect inflation in the eurozone to fall to nearly a two-year low in September when official data is released on Friday.
The harmonised index of consumer prices for the 20-country bloc is expected to drop from 5.2 per cent in August to 4.6 per cent in September, the slowest annual price growth in the region since October 2021, according to a Reuters poll of economists.
If inflation falls as much, or even more, than expected it would support investors’ hopes that the European Central Bank has reached the end of its interest rate raising cycle after lifting borrowing costs for a 10th time this month.
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