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Euro zone August inflation slows

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Euro zone August inflation slows

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Euro zone inflation slowed in August. The latest EU statistics office figures showed a fall to 1.6 percent year-on-year. In July it was 1.7 percent.

That was in line with economists’ expectations and comfortably below the European Central Bank’s target of just under two percent which mean interest rates are likely to be held steady well into next year.

The ECB meets on interest rates on Thursday.

No breakdown of the inflation figure is available until next month, but economists said the easing was most likely a result of cheaper energy and lower core inflation, which excludes the more volatile energy and food prices.