The annual core inflation rate in the Euro Area, which excludes prices of food, energy, and tobacco, was at 2.3% for the fourth consecutive month in August of 2025, in line with the preliminary estimate and remaining slightly ahead of the initial market expectations of 2.2%. Despite remaining at the lowest level since October 2021, the lack of a slowdown could fragment opinions of monetary policy response between dovish and hawkish members of the ECB Governing Council, with rate futures showing a larger consensus that the ECB will not deliver more rate cuts this year.