Inflation drops sharply in Europe. It offers a glimmer of hope, but higher oil prices loom
FRANKFURT, Germany -- Inflation that has been plaguing Europeans made a marked decline in September, strengthening hopes that consumers will eventually get relief from costlier groceries, vacations and haircuts — and that the European Central Bank won’t have to further restrict the economy by raising interest rates from already-record highs.The annual rate was 4.3% this month, a drop from 5.2% in August. But recently higher oil prices are casting a shadow over prospects for beating inflation back down to the central bank’s target of 2%. sending energy prices soaring as Moscow cut off most natural gas to Europe. Core inflation, which excludes volatile fuel and food prices, also fell — to 4.5% from 5.3%, according to the figures released Friday by the European Union statistics agency, Eurostat. The core figure is closely watched by the ECB in assessing how inflation is coming down.Readings across the major economies that use the euro currency were a mixed bag. Germany's annual inflat...