FRANKFURT, Germany, Sept 30, 2025 (BSS/AFP) - Inflation in Germany and 
France, the eurozone's biggest economies, rose in September, data showed 
Tuesday, fuelling expectations the European Central Bank (ECB) will not make 
further interest rate cuts in coming months.

Annual inflation in Germany, Europe's top economy, came in at 2.4 percent 
according to preliminary data from federal statistics agency Destatis, up 
from 2.2 percent the previous month.

The figure, slightly above analyst estimates, was driven by increasing costs 
for services and goods.

Under the "harmonised" metric favoured by the ECB, consumer prices also rose 
by 2.4 percent, up from 2.2 percent in August.

French annual inflation accelerated to 1.2 percent in September, up from 0.9 
percent in August, also driven by rising services costs, according to the 
INSEE statistics agency.

Under the harmonised rate, consumer prices rose 1.1 percent in September 
compared to 0.8 percent in August, according to INSEE's provisional estimate.

In Italy, the euro area's third-biggest economy, annual inflation remained 
stable in September at 1.6 percent, according to official data.

Under the harmonised rate, consumer prices rose to 1.8 percent this month 
from 1.6 percent in August.

Following a string of cuts to support the struggling eurozone economy, the 
ECB has kept interest rates on hold for its past two meetings, with inflation 
hovering around its two-percent target.

Stephanie Schoenwald, an economist with German public lender KfW, said the 
latest eurozone data showed that "the ECB was right in its decision to end 
its monetary easing policy, especially as price pressure in the services 
sector is once again proving persistent".

The central bank for the 20 countries that use the euro holds its next rate-
setting meeting on October 30.

Most economists expect the ECB to hold rates steady until at least the end of 
this year.