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Headline inflation will be below 2% next year

After falling to 1.8% in September, headline inflation in the euro-zone is almost certain to rise in the final few months of 2024. But we think that falling oil and natural gas prices will cause it to drop back again next year and average about 1.5% in 2025 and 2026. The core rate will also come down, albeit more gradually, and should reach 2% by the end of next year.

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