Euro Area Inflation Rises Slightly Above ECB Target as Core Prices Accelerate

Euro area consumer price inflation was confirmed at 2.2% year-on-year in September 2025, up from 2.0% over the previous three months and slightly above the ECB’s 2.0% mid-point target.

Services inflation edged higher to 3.2% from 3.1% in August, while energy costs declined only 0.4%, compared with a 2.0% drop previously.

Prices for food, alcohol, and tobacco rose more slowly at 3.0%, down from 3.2%, reflecting weaker unprocessed food inflation.

Non-energy industrial goods inflation remained steady at 0.8%.

Meanwhile, core inflation—which excludes energy, food, alcohol, and tobacco—rose to 2.4%, above the preliminary 2.3% estimate and reversing an over three-year low of 2.3% in August, signaling persistent underlying price pressures.