Recent Eurozone inflation data at 3.8% year-over-year in September, driven primarily by energy prices amid Middle East conflicts, has reinforced expectations for further ECB tightening. Economists in a late poll overwhelmingly anticipate a hold at the October 29 meeting followed by a 25-basis-point deposit rate hike to 2.75% in December, citing upside inflation risks and a resilient economy despite limited evidence of broad second-round effects. Policymakers have signaled a measured approach, with core trends appearing more contained and longer-term expectations anchored near target, while revised staff projections show headline inflation averaging 3.0% for 2026. These factors align with trader consensus favoring a modest December increase over larger moves or cuts.