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