(Bloomberg) -- Euro-area inflation slowed more than initially reported – cementing the case for a second straight interest-rate cut by the European Central Bank.
Consumer-price growth moderated to 1.7% in September from 2.2% the previous month, Eurostat reported Thursday. The initial estimate was 1.8%.
The data come just hours before the ECB is widely expected to lower its deposit rate by another quarter-point to 3.25%, with the recent retreat in inflation being faster than anticipated and the economy faring worse than hoped.
While a reduction later Thursday appears all but certain and more steps are likely, the pace and extent of further action is open. More dovish policymakers are pushing for rapid cuts, but some hawks are urging caution given still-elevated domestic inflation.
Challenging such arguments, however, services inflation dipped to 3.9% — falling below 4% for only the second time in two years. Still, a gauge of underlying price shifts that excludes volatile energy and food costs held at 2.7%.
--With assistance from Barbara Sladkowska and Joel Rinneby.
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