This reinforced expectations that the European Central Bank (ECB) will cut interest rates.
The pace of consumer price growth slowed to 2.2 percent in August compared to the same month last year, after reaching 2.6 percent in July, and came close to the ECB’s target of 2 percent. purpose.
The August estimate is the lowest since July 2021 and is in line with analysts’ expectations.
But core inflation, which excludes volatile energy, food, liquor and tobacco prices, fell slightly to 2.8 percent in August from 2.9 percent in July, Eurostat said.
Friday’s data will provide some respite after inflation unexpectedly rose in July.
In July 2022, the ECB launched an aggressive rate hike campaign to curb high inflation, which peaked at 10.6 percent in October of that year as Russia’s invasion of Ukraine drove up food and energy prices.
In June of this year, the ECB cut interest rates for the first time.
The Frankfurt-based institution has kept rates unchanged since then, but markets are expecting another rate cut after the September 12 meeting.
2024-08-30 23:18:31