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Eurozone inflation and unemployment rise

Eurozone inflation and unemployment rise
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Eurozone inflation jumped more than expected in August.

Economists said rising energy prices were the main factor.

Consumer prices in the 17 countries using the euro rose 2.6 percent year-on-year.

It had been up 2.4 percent in July.

The numbers, which were a first estimate from the European Union’s statistics office, make it less likely the European Central Bank will cut interest rates at its policy meeting next Thursday.

However, the Bank also has to take into account the fact that unemployment hit a new record for the eurozone in July with 18 million people out of work.

The jobless rate was 11.3 percent of the working population.

Rising unemployment is likely to limit inflationary pressures in coming months.