US EditionEuro zone inflation rises to hotter-than-expected 2.1% in August
Inflation rose to 2.1% in August due to slower energy price declines and ongoing increases in food, alcohol, tobacco, and services, Eurostat reported.
- On Tuesday, Eurostat's flash data show the Eurozone Harmonized Index of Consumer Prices rose 2.1% year‑on‑year in August, just above the ECB's 2% inflation target.
- By component, food, alcohol & tobacco led increases with 3.2% inflation, services followed at 3.1%, while energy prices fell by-1.9%, easing downward pressure.
- Core inflation remained unchanged at 2.3% year-on-year, defying forecasts of a dip to 2.2%, while month-on-month HICP rose 0.2% and core HICP jumped 0.3% after July's dip.
- The ECB's July policy stance—a 2% key interest rate—remains unchanged as economists polled by Reuters expect no change in September, while the HICP flash coincided with EUR/USD trading around 1.1700.
- Consumers are already feeling the impact as European consumers face higher supermarket prices and the EU‑U.S. trade deal's 15% duty could weigh on activity.
48 Articles
48 Articles
Eurozone Inflation Rises to 2.1 Percent, Firming Bets ECB Will Hold Rates Steady
Euro zone inflation edged up slightly in August, staying close to the European Central Bank’s (ECB) target and bolstering expectations that policymakers will keep interest rates unchanged at next week’s meeting. Consumer prices across the 20-nation currency bloc rose by 2.1 percent in annual terms last month, up from 2.0 percent in July, according to Eurostat data released Sept. 2. On a monthly basis, prices rose 0.2 percent after being flat in …
Eurostat's rapid estimate indicates rise in the face of July, but falls back on August 2024. Substantive inflation remained stable in 2.3%.
Inflation in the euro area has risen to 2.1 percent.
According to the first estimate by the European statistical office Eurostat, annual inflation in August was 2.1%, which is 0.1 percentage point more than in July. In Slovenia, at three percent, it was well above the euro average.
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