Eurozone inflation falls to lowest level in three years
Eurozone inflation sank to 2.2 per cent in August, its lowest level in three years, Eurostat reported on Friday in a flash estimate. Inflation was 2.6 per cent in July. The figure is in line with analysts’ predictions.
The decline is mainly due to lower energy prices. In contrast, services, food and industrial goods have become more expensive.
Inflation rose in only five countries. According to Statbel, inflation in Belgium is 2.86 per cent. Eurostat, which uses a different calculation, arrives at an August inflation rate of 4.5 per cent for Belgium, the highest figure in the eurozone.
The 2.2 per cent average is close to the European Central Bank's 2 per cent target. Core inflation, excluding volatile elements such as energy, fell only slightly in August, by 0.1 percentage points to 2.8 per cent.
Unemployment record
Economists are assuming there will be a second interest rate cut after next ECB meeting on 11 and 12 September, but that is not certain.
Meanwhile, the eurozone unemployment rate fell to 6.4 per cent in July, equalling the lowest level since Eurostat started monitoring the data in 1998.
In April, May and June, the rate stood at 6.5 per cent. The number of unemployed people dropped by 114,000 compared to June and 190,000 compared to July last year. Unemployment among under-25s also fell slightly, from 14.4 to 14.2 per cent.
Across the European Union, the unemployment rate remained stable at 6 per cent, another historically low level.
© PHOTO JEFF PACHOUD / AFP
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