Eurozone inflation: Prices edge up to 2.1% in August, ECB likely to hold rates steady
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Eurozone inflation: Prices edge up to 2.1% in August, ECB likely to hold rates steady

Inflation in the eurozone rose slightly to 2.1% in August from 2% in July, official data showed on Tuesday, fuelling expectations that the European Central Bank (ECB) will keep interest rates unchanged at its policy meeting next week.The EUโ€™s statistics agency Eurostat said the uptick was mainly driven by a smaller fall in energy prices. While energy costs continued to decline, they fell by 1.9% compared with 2.5% in July, AFP reported.Analysts polled by Bloomberg had expected inflation to remain at 2%, in line with the ECBโ€™s target. The increase now reinforces expectations that policymakers will leave rates unchanged at their September 11 meeting. The ECB had already paused rate cuts in July, ending a streak of consecutive reductions that began in September 2024.Core inflation โ€” which excludes volatile categories like energy, food, alcohol and tobacco โ€” remained steady at 2.3% in August.Meanwhile, food, alcohol and tobacco prices eased to 3.2% from 3.3% in July, while services inflation also softened marginally to 3.1% from 3.2%.



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