According to data released by the European Statistical Office (Eurostat), consumer inflation in the Eurozone for the month of August came in slightly lower than expected. Nevertheless, it remains significantly higher than the European Central Bank’s (ECB) targeted inflation rate of 2%.
The Eurozone’s Consumer Price Index (CPI) for August showed a year-on-year increase of 5.2%, which is marginally lower than the initial estimate of 5.3% reported on August 31.
On a monthly basis, the Eurozone’s CPI for August registered a 0.5% increase, just below the anticipated level of 0.6%.
Additionally, the core inflation rate for August, which excludes food and energy prices, stood at 5.3% year-on-year and 0.3% on a monthly basis, aligning closely with preliminary estimates.
The Eurostat report highlights that the year-on-year CPI figure for August was primarily influenced by service prices, contributing 2.41 percentage points to the overall inflation rate. This was followed by food, alcohol, and tobacco prices, which added 1.98 percentage points, and industrial goods, contributing 1.19 percentage points. However, lower energy prices acted as a dampener, reducing the overall CPI by 0.34 percentage points.
These inflation figures indicate continued price pressures within the Eurozone, posing challenges for the ECB as it seeks to navigate monetary policy and price stability in the region.