Eurozone annual inflation held at around 2% in September, according to the flash estimate published by Eurostat on Wednesday, keeping price growth close to the European Central Bank's target. The reading strengthened market expectations that the ECB will maintain its deposit rate at 2% at its next meeting.

Core inflation, which strips out energy and food, remained sticky above the headline figure, driven largely by services costs. Economists at ING and Commerzbank had forecast a broadly flat reading, with energy prices exerting downward pressure and services keeping underlying inflation elevated.

National releases earlier in the week from Germany, France, Spain and Italy pointed to a stable inflation picture across the bloc's largest economies. German inflation, reported on Tuesday by the Federal Statistical Office, came in near target, while Spanish figures showed a modest uptick tied to fuel and food.

ECB President Christine Lagarde has repeatedly said the central bank is in a "good place" on inflation and would move meeting by meeting. An ECB spokesperson has signalled no urgency to cut further, and money markets priced only a marginal chance of any move before the end of the year.

The steady reading offers relief to households and businesses after years of elevated borrowing costs. Analysts at Deutsche Bank cautioned that persistent services inflation could delay any resumption of rate cuts well into 2027.