Eurozone's annual inflation rate fell to 2.2% in August, with energy prices declining 3%.

Eurozone's annual inflation rate dropped to 2.2% in August, marking its lowest point since July 2021. The main driver of inflation is the price of services, which saw a year-on-year growth of 4.2%. Food, alcohol, and tobacco prices registered an annual inflation rate of 2.4%. Energy prices recorded a negative growth of 3% in August. Analysts expect a continued deceleration in inflation but do not foresee a drop below 2.5% for the rest of the year. The ECB is likely to consider cutting interest rates in its upcoming meeting on September 12, aligning with similar moves by the US Federal Reserve.

August 30, 2024
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