Germany saw an overall slowdown in inflation in September, although core inflation and service sector inflation remained unchanged, according to regional data reported by Jinshi. Following the release, the euro experienced a rise. Franziska Palmas, an economist at Capital Economics, noted that while the overall inflation eased, the expected decline in service sector inflation—which is closely monitored by the European Central Bank—has been limited. She attributed part of the stability to the diminishing effects of the Paris Olympics on pricing pressures.

Despite the data, market expectations for an October rate cut, with a 93% chance forecasted, may be overly optimistic, given the continued firmness in core inflation and the service sector, Palmas suggested.