German inflation fell for the second month in a row in September, as energy prices pulled back. However, food prices rose at a faster pace.

By Rachel More BERLIN (Reuters) -Inflation eased across key German states in September, preliminary data showed, suggesting that inflation would also decrease nationwide in Europe's largest economy, as European Central Bank doves build on their case for another rate cut.

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.

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.