Eurozone inflation confirmed at 0.2% in August

Inflation in the eurozone was confirmed at 0.2% in August, unchanged from July, according to data from Eurostat.

Food, alcohol and tobacco prices rose 1.3%, down slightly from a 1.4% increase in July. Meanwhile, energy prices fell 5.6%, which was less than the 6.7% drop seen in July.

For the European Union, inflation came in at 0.3%, up from 0.2% the month before.

The lowest annual rates were registered in Croatia, Bulgaria and Slovakia, with the highest rates in Belgium, Sweden and Estonia.

Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, said: “The EZ consumer price index was held back by a dip in core inflation last month, and a marginally lower rate of increase in food prices, which offset a continuing reduction in energy price deflation.

“Overall, we think the August data marks a temporary pause in the upward momentum which began in Q2, and see higher inflation ahead. The core rate should edge higher in the next six-to-12 months, and base effects will boost the year-over-year rate in energy prices further.”