Eurozone inflation eases to 1.8% in September

Eurozone inflation fell to 1.8% in September, below the European Central Bank’s 2% target, according to preliminary data from the European statistics agency Eurostat.

The reading was in line with economists polled by Reuters, after annual inflation hit a three-year low of 2.2% in August.

Core inflation, which strips out the more volatile energy, food, alcohol and tobacco prices, was 2.7%. It was expected to remain unchanged from August’s reading of 2.8%, according to CNBC.

The figures come after inflation in September fell below the European Central Bank’s 2% target in several major eurozone economies, including France and Germany. Preliminary data on Monday showed that the unified inflation rate in Europe’s leading economy fell more than expected to 1.8% year-on-year.

European Central Bank President Christine Lagarde said on Monday that policymakers were becoming more confident that inflation would return to its 2% target. “Looking ahead, inflation may rise temporarily in the fourth quarter of this year as previous sharp declines in energy prices ease off annual rates, but recent developments reinforce our confidence that inflation will return to the target in due course,” she told a hearing of the European Parliament’s Economic and Monetary Affairs Committee.