In September, Germany's inflation rate decreased to 1.8%, lower than anticipated.

Preliminary data from Destatis revealed that the harmonized German consumer price index decreased to 1.8% in September, lower than anticipated.

According to a Reuters poll, the September harmonized CPI was expected to be 1.9%. However, in August, the harmonized CPI unexpectedly decreased to 2%.

The preliminary harmonized CPI decreased by 0.1% on a monthly basis, according to a Reuters poll that predicted the monthly reading would remain unchanged.

In February 2021, the German harmonized CPI figure was below 2%, which is the European Central Bank's target rate for inflation, according to LSEG data.

Harmonized inflation readings are ensured in the euro area and European Union for comparability purposes.

In September, inflation decreased in several major German regions, including North-Rhine Westphalia, where it fell from 1.7% in August to 1.5%.

In September, the harmonized inflation rate in France and Spain fell below the 2% target, according to data published last week within Europe.

The German inflation figures, which will be released a day before the scheduled flash inflation data for the euro area, will be closely monitored by investors for indications of the likelihood of another interest rate cut from the European Central Bank. This month, the bank already delivered its second interest rate cut of the year.