Inflation sank across six German states in September — suggesting a slowdown in national data due later in the day that will further fuel calls the European Central Bank to cut interest rates in October.

By Maria Martinez and Rachel More BERLIN (Reuters) -German inflation fell to its lowest level since February 2021 this month, preliminary data showed on Monday, helping European Central Bank doves build their case for another interest rate cut next month.

German inflation declined further below the European Central Bank’s 2% target in September, further raising the pressure for a consecutive interest-rate cut at the bank’s next meeting in October.

Christine Lagarde said the European Central Bank is becoming more optimistic that inflation will return to target in a "timely manner." Speaking to lawmakers at the European Parliament in Brussels, the ECB president added that the central bank will take this into account at the October policy meeting but is not "pre-committing to a particular rate path.

The European Central Bank is increasingly confident that inflation will fall back to its 2% target and this should be reflected in its October policy decision, ECB President Christine Lagarde said on Monday.

The European Central Bank is more confident that inflation is going to settle at its target after a series of recent data releases, and will take that into account when it next sets policy, President Christine Lagarde said Monday.