Member-state readings showed wide divergence, ranging from just 0.2 percent in Cyprus to 8.4 percent in Romania, reflecting differences in energy exposure and domestic demand.

Services remained the strongest contributor to price growth, adding 1.54 percentage points, while food and industrial goods made smaller contributions, and energy subtracted from the index.

The moderation reinforces progress toward the ECB’s 2 percent target, though persistent strength in services suggests underlying pressures remain. Investors now look to upcoming wage, services, and core inflation data to gauge whether the ECB could consider rate cuts in 2026.