Eurozone headline inflation is expected to be higher than in August at 2.3%. Core inflation is forecasted to rise by 2.3% as well. The ECB is not anticipated to make any more interest rate cuts. Services inflation and food, alcohol, and tobacco prices were the main drivers in August.

Energy prices may boost eurozone inflation in September, but underlying inflation remains on a downtrend. The rise in headline inflation is not as significant as expected.

The ECB projects HICP inflation to remain around 2% for 2025 and drop to 1.7% in 2026. Core inflation is expected to fall to 1.9% in 2026. The next ECB meeting is on Oct. 30, with no expected rate cut according to economists.

Analysts believe the ECB has finished its cutting cycle and may leave rates unchanged until 2026. European equity markets have been strong in 2025 despite challenges, benefiting from low interest rates.

Read more at Morningstar: What to Expect from September’s CPI Data