In August, the CPI inflation rate in the eurozone was 2.2% year on year. This reading is in line with market consensus.
The indicator was at 2.6% in the previous month. Core inflation fell to 2.8% year on year. The inflation indicator is already very close to the 2% target.
However, we still see persistently elevated inflation in services. In the last month, service prices grew by 0.4% month on month, and the annual rate increased to 4.2% year on year. Meanwhile, energy prices recorded a decrease of 1% month on month, which is a decrease of 3% year on year.
The overall sentiment of the reading remains positive and strengthens the belief in a September interest rate cut of 25 basis points in the euro zone. It also seems that this will not be the only downward move by the end of the year.
Bartosz Wałecki, Analyst at Michael / Ström Dom Maklerski.
Source: https://ceo.com.pl/inflacja-cpi-w-strefie-euro-bliska-celu-obnizka-stop-we-wrzesniu-coraz-bardziej-prawdopodobna-45046
