The European Central Bank (ECB) released its assessment ahead of this week’s monetary policy meeting, reporting that annual inflation in the Eurozone rose again in September, reaching 2.2%. The Bank noted that the increase was mainly driven by fluctuations in energy prices and strong demand in certain service sectors.
Despite the temporary rise in price pressures, the ECB expects inflation to gradually return toward its target in the medium term. The Bank maintained its inflation forecast for 2026 at 1.7%.
Economists do not anticipate any abrupt changes to interest rates based on recent economic data. However, the persistence of core inflation suggests that the ECB may maintain its “tight policy stance for longer.”
According to analysts, while growth in the Eurozone remains weak, the fact that inflation has not yet fully settled at target levels forces the ECB to pursue a careful balancing act.
