Inflation is now in line with the target set by the European Central Bank. As economic growth remains robust, more rate cuts from the ECB aren't likely to come soon.
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Annual inflation in the eurozone was 2.0% this August, Eurostat announced on Wednesday, updating its earlier estimate of 2.1%.
The figure was stable month to month, as June and July also saw price pressures at 2%.
Looking at the main components of inflation, food, alcohol & tobacco had the highest annual rate in August, recorded at 3.2%, compared with 3.3% in July.
This was followed by services (3.1%, compared with 3.2% in July), non-energy industrial goods (0.8%, stable compared with July) and energy (-2.0%, compared with -2.4% in July).
The 2% figure is in line with the inflation target from the European Central Bank, and the new data comes after the ECB chose to keep interest rates steady last week.
The bank held its key rate on the deposit facility at 2%, its lowest level in more than two years.
Speaking at the post-meeting press conference in Frankfurt, Lagarde stated that the “disinflationary process is over” and said that the eurozone is “in a good place”. She cited a resilient labour market, a stable inflation outlook and upwardly revised growth projections for 2025.
Lagarde nonetheless stressed that the ECB is “not on a predetermined path” and future policy moves will depend on economic data.
