Eurozone inflation was up slightly in August, official data showed on Tuesday, fuelling expectations that the European Central Bank will keep interest rates unchanged next week.
Inflation in the single currency area rose to 2.1 percent last month from two percent in July, the EU’s statistics agency said.
This was largely down to a smaller drop in energy prices, which while continuing to fall, did so at a lower rate, Eurostat data showed, reports BSS.
Analysts polled by Bloomberg had predicted the level of inflation rate would remain unchanged at two percent, the ECB’s target.
The rise reinforces expectations that the central bank will keep rates unchanged at its next monetary policy meeting on September 11.
The ECB held rates steady at its last meeting in July, ending a streak of consecutive cuts stretching back to September 2024.
Tuesday’s data showed core inflation — which strips out volatile energy, food, alcohol and tobacco prices — was stable at 2.3 percent in August.
Energy prices, however, fell by 1.9 percent — significantly less than the 2.5 percent drop recorded in July.
Food, alcohol and tobacco price rises eased to 3.2 percent, from 3.3 the previous month. Services price increases were similarly down to 3.1 percent from 3.2 percent in August.
