The euro area’s inflation rate slowed slightly to 2.1% in October 2025, down from 2.2% in September, bringing it closer to the European Central Bank’s (ECB) target of 2%, according to Eurostat data.
The decline was mainly driven by a slower increase in food, alcohol, and tobacco prices, which rose 2.5% compared to 3% the previous month, along with a sharper 1% drop in energy prices after a 0.4% decrease in September. Inflation in non-energy industrial goods also eased to 0.6%.
On the other hand, services inflation accelerated to 3.4%, the highest since April, while core inflation (excluding energy, food, alcohol, and tobacco) remained stable at 2.4%, slightly above expectations.
This slowdown strengthens hopes that the euro area is moving closer to achieving price stability, paving the way for potential monetary policy easing in the coming period.
