Eurozone inflation picks up in September, but core reading steady
By Benjamin Chiou
Date: Wednesday 01 Oct 2025
(Sharecast News) - Eurozone inflation rose as expected in September, moving above the European Central Bank's 2.0% target for the first time in five months.
The harmonised consumer price index (CPI) for the single-currency region was 2.2% higher than last September, according to Eurostat on Wednesday, up from 2.0% in August - a level where it had stayed for three months.
This was in line with the consensus forecast.
A significant easing of energy price deflation had a big impact on September's figures, with energy prices falling by just 0.4% after a 2.0% year-on-year fall in August. Meanwhile, service-sector inflation accelerated to 3.2% from 3.1%.
Food, alcohol and tobacco prices were 3.0% higher than last year, with price growth easing from 3.2% in August, while non-energy industrial goods inflation was unchanged at 0.8%.
Nevertheless, the core inflation rate, which excludes energy, food, alcohol and tobacco, was unchanged at 2.3% for the fifth straight month, as expected by economists.
"Though an uptick from August's print of 2.0% y/y, this can largely be attributed to energy base effects and is expected to moderate back to the ECB's target once more in the autumn months," said analysts at TD Securities in a research note.
"Core inflation remained stable at 2.3% y/y [...] despite a small uptick in services to 3.2% y/y (Aug: 3.1%), and food inflation eased somewhat to 3.0% y/y (Aug: 3.2%) managing concerns of passthrough to inflation expectations."
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