The latest data from Eurostat confirms that inflation in the eurozone is at its slowest pace in three years, with prices increasing by 2.2% in August, down from 2.6% in July. This marks a significant decrease from the 5.2% rate recorded the previous year. In the EU as a whole, prices increased by 2.4% in August compared to the previous year, down from 2.8% in July and 5.9% the year before.
Services were the main driving force behind inflation in the eurozone, with a 1.8% increase in prices in August. Meanwhile, food, alcohol, and tobacco prices rose by 0.46%, while energy prices fell by 0.29%. Core inflation, which excludes food and energy prices, was at 2.8%, down from 5.3% the previous year and moving towards the European Central Bank’s target of 2%.
Among eurozone countries, Lithuania and Latvia had the smallest inflation rates at 0.8% and 0.9% respectively, while Romania and Belgium had the highest rates at 5.3% and 4.3%. The overall decrease in inflation comes just a week after the ECB cut rates in the eurozone, signaling a positive trend in the economy. With inflation inching closer to the ECB’s target, it will be interesting to see how policymakers respond in the coming months.
Source
Photo credit www.euronews.com
