Eurozone headline inflation reached 2.2% in September, slightly below expectations, while core inflation remained at 2.3% for the fifth consecutive month. Rising fuel, food, and alcohol prices contributed to the increase, with services inflation at 3.2%. The European Central Bank is not expected to cut rates in 2025.

Inflation rates varied across Eurozone countries, with French inflation at 1.1%, Italian at 1.8%, German at 2.4%, and Spanish at 3.0%. Services inflation led the rise, while energy prices fell. Analysts predict a gradual cooling of inflation due to wage growth, energy prices, and demand-side pressures.

The European Central Bank is unlikely to make further rate cuts in 2025, after keeping rates unchanged in recent meetings. With inflation nearing target levels, the ECB sees its policy as well-positioned and would require a significant shock to consider further cuts. The next monetary policy meeting is set for Oct. 30.

Read more at Morningstar: Eurozone Inflation for September Just Below Forecast