FX.co ★ Euro Area Inflation Rises Slightly Above ECB Target

In September 2025, the annual consumer price inflation within the Euro area was confirmed at 2.2%, an increase from the 2.0% recorded over the preceding three months and slightly surpassing the European Central Bank's target of 2.0%. Specifically, inflation in the services sector rose marginally to 3.2% from 3.1% in August. Energy costs experienced a minor decline of 0.4%, in contrast to a previous decrease of 2.0%. Prices for food, alcohol, and tobacco increased at a slower rate of 3.0%, down from 3.2%, owing to weaker inflation in unprocessed food. Inflation for non-energy industrial goods remained unchanged at 0.8%. Core inflation, which excludes the volatility of energy, food, alcohol, and tobacco prices, rose to 2.4%, exceeding the preliminary estimate of 2.3% and reversing an over three-year low from August, indicating ongoing underlying price pressures.