Inflation in the eurozone dropped from 2.2% to 1.8% in September, primarily due to a significant 6% decrease in energy prices compared to last year. The core inflation rate is expected to decline slightly to 2.7%. However, service prices remain a concern, rising 4% year-on-year, indicating potential challenges ahead as energy price effects diminish in November. The European Central Bank is likely to cut interest rates at its October meeting in response to the falling inflation and a deteriorating economic outlook.
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