According to official data released on Tuesday, eurozone inflation increased somewhat in August, supporting forecasts that the European Central Bank will maintain interest rate stability the following week.
According to the EU’s statistics agency, the single currency area’s inflation rate increased from 2% in July to 2.1% last month.
This was mostly caused by a slower decline in energy prices, which, according to Eurostat data, continued to decline but did so more slowly.
According to analysts surveyed by Bloomberg, the ECB’s goal inflation rate of two percent will not alter.
Analysts polled by Bloomberg had predicted the level of inflation rate would remain unchanged at two percent, the ECB’s target.
The increase supports predictions that the central bank will maintain current rates at its September 11 monetary policy meeting.
The ECB ended a run of consecutive rate decreases that began in September 2024 by holding rates constant at its most recent meeting in July.
According to figures released Tuesday, core inflation for August remained steady at 2.3 percent, excluding the volatile prices of food, energy, alcohol, and tobacco.
However, energy prices only dropped by 1.9%, which is a lot less than the 2.5% decline that was noted in July.
Price increases for food, alcohol, and tobacco decreased to 3.2 percent from 3.3 percent the month before. Similarly, price hikes for services decreased to 3.1% from 3.2% in August.
