Inflation in the eurozone dropped significantly to 1.7% in September from 2.2% in August, paving the way for the European Central Bank to cut interest rates again at its meeting today.

In Greece, inflation fell marginally from 3.2% to 3.1% according to Eurostat’s final data and is the highest of all in the eurozone.

Eurozone inflation slowed more than expected in September to 1.7% over the year, against a first estimate of 1.8%, Eurostat said today, just ahead of a possible interest rate cut by the European Central Bank (ECB).

The ECB is concerned about signs of an economic slowdown in the eurozone, where inflation appears to be starting to come under control.

Consumer price developments, better than expected last month thanks to falling energy prices, are expected to encourage it to cut interest rates to boost consumption and investment.

Inflation in September fell below the 2% mark, the target set by the monetary institution, for the first time since June 2021.

In August it had reached 2.2%, after 2.6% in July.