Eurozone Inflation Drops to 1.8% in September 2024

The annual inflation rate in the Eurozone is expected to fall to 1.8% in September 2024, down from 2.2% in August, according to a flash estimate from Eurostat. This marks a significant improvement for the European economy, driven largely by a sharp decline in energy prices, which dropped by 6% compared to a 3% fall the previous month.

Despite the overall reduction in inflation, certain sectors remain elevated. The cost of services is projected to have the highest annual rate, at 4.0%, while food, alcohol, and tobacco prices are also seeing slight increases. The continued easing of inflation offers some relief amid concerns over rising living costs across the region.