Eurozone inflation slows in August but misses European Central Bank target
Inflation in the Eurozone area slowed to two per cent this month, narrowly missing the European Central Bank (ECB) target.
The drop of 0.1 per cent from 2.1 per cent in July this year has kept inflation above the ECB goal of just under two per cent.
Energy is expected to have the highest annual rate this month at 9.2 per cent, compared to 9.5 per cent in July, according to official data agency Eurostat's figures, released today.
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Services inflation in the 19 Eurozone countries stood at 1.3 per cent in August, down 0.1 per cent on the previous month, and non-energy industrial goods dropped from 0.5 per cent in July to 0.3 per cent this month.
Food, alcohol and tobacco inflation was at 2.5 per cent with no change from July.
French national statistics body Insee also reported that inflation in France stayed constant at 2.6 per cent this month, the highest level in six years.
Consumer prices rose 0.6 per cent in August from minus 0.1 per cent in July, according to provisional data published today.
The rise was led by seasonal rebound in prices after summer sales and the increase in prices of tourism-related services.
There was a slowdown in energy prices, from 14.3 per cent in July to 13 per cent this month, which a small rise in food prices from 1.9 per cent to 2.1 per cent failed to offset.
The price of tobacco was stable in August, and the slight rise in the prices of petrol and gas were offset by lower electricity prices, the provisional data showed.
The final data is due to be published on 13 September.
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