ECB mulls second interest rate cut as eurozone inflation falls to 2.2%

The ECB may well cut interest rates for a second time this year as inflation nears its 2% target. Photograph: Wolfgang Rattay/Reuters

Eurozone inflation fell this month to its lowest since June 2021, adding to the case for the European Central Bank (ECB) to cut interest rates in September.

Inflation in the single currency bloc dropped to 2.2% in August, down from 2.6% in July, and barely above the ECB’s 2% target.