• Prior +2.2%
• Core CPI +2.7% vs +2.7% y/y expected
• Prior +2.8%

The readings are as expected with headline annual inflation ticking below 2% for the first time since 2021. That said, core annual inflation only eased ever so slightly to 2.7%. So, that’s still the bigger focus with services inflation continuing to sit higher mostly. But all of this just rebuffs market expectations for an ECB rate cut in October. And Rehn’s comments earlier are also supportive of that.

This article was written by Justin Low at www.forexlive.com.