BERLIN, Sept 30 (Reuters) - German inflation fell to its lowest level since February 2021 this month, preliminary data showed on Monday, helping European Central Bank doves build their case for another interest rate cut next month.
German inflation eased slightly more than forecast to 1.8% in September, data from the federal statistics office showed.
Analysts polled by Reuters had forecast a reading of 1.9% in September, after a year-on-year increase in consumer prices of 2.0% in August, based on data harmonised to compare with other European Union countries.
Core inflation, which excludes volatile food and energy prices, fell to 2.7% in September from 2.8% in August.
Economists pay close attention to German inflation data as the country publishes its figures a day before euro zone inflation data.
Inflation in the euro zone is expected to ease further to 1.9% in September from 2.2% the previous month, according to economists polled by Reuters.
Inflation has already eased in two other major euro zone economies, Spain and France.
However, the ECB always expected the September euro zone reading to be low – mostly because of the high base effect from energy prices a year ago - and has warned that inflation may pick up over the next few months.
Reporting by Maria Martinez and Rachel More; editing by Matthias Williams, Kevin Liffey, Ed Osmond and Christina Fincher
Source: Reuters