"Slowing Economy Drives Euro Zone Inflation to 2-Year Low"

Euro zone inflation fell to its lowest level in two years in September, indicating that the European Central Bank's interest rate hikes were successful in curbing runaway prices but at the expense of economic growth. Consumer prices in the euro zone rose by 4.3% in September, the slowest pace since October 2021. Inflation excluding food, energy, alcohol, and tobacco dropped to 4.5%, the largest decline since August 2020. The ECB is confident that it has raised interest rates enough to bring down inflation to its 2% target by 2025. However, the impact of the tightening cycle on the economy is becoming evident, with indicators pointing to a possible recession in the euro zone.