Inflation in the eurozone accelerated to 2.2% y/y in September

Energy prices remained virtually unchanged over the month

Inflation in the eurozone rose by 2.2% in September 2025 compared to September 2024. Thus, the rate of price growth accelerated compared to 2.0% in August, according to preliminary data from Eurostat.

Core inflation, which excludes energy and food costs, remained at 2.3%. Energy prices remained virtually unchanged, falling by only 0.4% after a 2.0% decline in August. Among other components of inflation, the highest annual rate in September was recorded in services (+3.2%), followed by food, alcohol, and tobacco (+3.0%), as well as industrial goods excluding energy (+0.8%).

Among EU member states, the highest annual inflation rates in September were observed in Estonia (+5.2%), Croatia (+4.6%), Slovakia (+4.6%), and Austria (+3.9%). The lowest rates were in Cyprus (0.0%), France (+1.1%), and Italy (+1.8%). In Germany, prices rose by 2.4%.

As reported by GMK Center, the European Central Bank continues to pursue a policy of monetary stimulus. In June, the ECB cut interest rates for the eighth time this year. From June 11, the deposit rate will be 2%, the main refinancing rate will be 2.15%, and the marginal lending rate will be 2.4%.

According to Eurostat estimates, the EU’s GDP grew by 1% in 2024 compared to 2023. In the eurozone, this figure increased by 0.9% year-on-year. In the fourth quarter, seasonally adjusted EU GDP grew by 0.4% compared to the previous quarter and by 1.4% compared to the same period in 2023. In the eurozone, the indicator grew by 0.2% quarter-on-quarter and by 1.2% year-on-year.