the August CPI reflects a mixed picture: progress on inflation is evident, but the “last mile” toward the Fed’s 2% target is proving stubborn.

US Consumer Price Index - August 2025

This is a pivot in tone. The ECB is moving from a defensive posture (fighting inflation) to a more neutral stance (balancing growth and stability). Markets will likely read this as a dovish tilt, potentially strengthening the euro in the short run, ...

ECB's Lagarde: Risks to economic growth are more balanced