Eurozone Misses European Central Bank Target In August Amidst A Slowed Inflation

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Last August, the inflation in the Eurozone area decreased to two percent. However, it narrowly missed the target that was set by the European Central Bank (ECB).

The drop of 0.1 percent from the 2.1 percent that was recorded in July this year has kept the inflation above the goal of the ECB of an inflation of just below two percent.

According to the official figures of Eurostat, a data agency, that were released last Friday, Energy is anticipated to have the highest annual rate at 9.2 percent for last month as compared to the 9.5 percent last July.

Last August, the services inflation in the 19 countries of the Eurozone stood at 1.3 percent. It is down by 0.1 percent as compared to the previous month. On the other hand, non-energy industrial goods fell from 0.5 percent in July to 0.3 percent in August.

Alcohol, tobacco, and food inflation was at 2.5 per cent. It recorded no change from the figure recorded last July.

Insee,  French national statistics body,  also revealed that the inflation in France remained to be constant at 2.6 percent in August. It is the highest level recorded within a period of six years.

According to provisional data that were published last Friday, the consumer prices increased by 0.6 percent last August from the minus 0.1 percent that was recorded last July.

The increase was fuelled by the seasonal rebound in prices after the summer sales and the rise in prices of tourism-related services.

There was also a slowdown in energy prices, from 14.3 percent last July to 13 percent last August. The small increase in food prices from 1.9 percent to 2.1 percent was not able to offset the slowdown.

The provisional data showed that the price of tobacco remained steady last month, and the slight increase in the prices of petrol and gas were offset by the lower prices of electricity.

The final figured is scheduled to be published on the 13th of September.