The Netherlands has the second highest inflation in the eurozone after prices grew by 3.5% in the 12 months to September, only marginally less than August.

Prices for food, drink and tobacco rose by 6%, while services cost 5.6% more than a year ago. Those steep rises were offset by a 6.1% drop in the cost of fuel, the statistics agency CBS said in its preliminary analysis.

Among nations with the euro as their currency only Belgium recorded a higher inflation rate of 4.5% in September. Across the region inflation dropped from 2.2% to 1.8%.

The figure is below the European Central Bank’s target of 2%, boosting hopes that the bank’s monetary policy committee will cut interest rates for the third time this year when it meets in October.

The state of the German economy, where unemployment is at its highest level in four years and GDP is forecast to contract by 0.1% in 2024, has also strengthened the argument for lower interest rates.