Christine Lagarde said the European Central Bank is becoming more optimistic that it will be able to get inflation under control, and will reflect on that at its October interest-rate decision.Most Read from BloombergA 7,

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.

FRANKFURT (Reuters) - 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.

President Christine Lagarde expressed confidence in Brussels on Monday that inflation could soon return to the bank's target level and did not rule out a further interest rate cut. "Looking ahead, inflation might temporarily increase in the fourth quarter of this year as previous sharp falls in energy prices drop out of the annual rates,

German inflation declined further below the European Central Bank’s 2% target in September, further raising the chance of a consecutive interest-rate cut at the bank’s next meeting in October.Consumer prices were 1.

EUR/USD stays in positive territory at around 1.1200 after the data from Germany showed that the annual CPI inflation softened to 1.6% in September. Later in the day, investors will be scrutinizing comments from Fed Chairman Jerome Powell.

At its September meeting, the ECB had cut its key deposit rate for a second time this year, taking it down to 3.50 percent from 3.75. However, Lagarde had indicated at the time that the Bank would probably wait until December before moving again, due to ongoing uncertainties around lingering inflation, especially in the services sector.

Consumer prices rose just 0.8% from a year ago in September compared with 1.2% in August, Italy’s statistics institute said Monday. The deceleration was mainly due to energy, transport and communication costs,

The European Central Bank is increasingly confident that inflation will fall to its 2% target and this will be reflected in its next policy move, the bank's president said on Monday, dropping the clearest hint yet about a coming interest rate cut.

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.