Inflation in Europe falls below 2%, opening way for faster rate cuts

Economists have started to consider the possibility of a rate cut (Michael Probst/AP)

Inflation in the 20 countries that use the euro fell to 1.8% in September, below the European Central Bank’s (ECB) target of 2% for the first time in more than three years as falling energy prices give consumers relief from a burst of inflation that at one point reached into double digits.

Tuesday’s official figure coupled with an anaemic growth outlook could pave the way for faster interest rate cuts from the ECB, which has already trimmed rates twice.