In September, inflation in the euro zone reached its lowest level in two years
Consumer prices in the euro zone increased by 4.3% in September, down from 5.2% the previous month
When excluding food, energy, alcohol, and tobacco, inflation dropped to 4.5% from 5.3%, marking the most significant decrease since August 2020
The European Central Bank (ECB) had been raising interest rates to control rising prices, and these numbers may bolster their confidence in achieving a 2% inflation target by 2025
Base effects and reduced underlying inflationary pressures contributed to the decline, according to experts
The drop in inflation was broad-based, with all price categories showing slower growth and energy prices declining for the fifth consecutive month
German import prices, a leading indicator of consumer prices, experienced the largest year-on-year decline since November 1986 in August
Euro zone inflation briefly reached double digits last autumn due to factors like high energy costs and supply chain disruptions
The ECB responded by increasing its key interest rate to 4.0%, marking a significant change from the previous negative rate
Some economic indicators, such as falling retail sales and rising unemployment in Germany, suggest the possibility of a recession in the euro zone, despite the ECB's expectations of an economic rebound next year