Eurozone inflation slows to 5.2% in August
Compared with July, annual inflation fell in 15 EU member states in August, remained stable in one and rose in 11.
Prices increased by 5.2% in the eurozone last month, down from 5.3% in July, according to official figures from Eurostat. This is a dramatic fall from a year earlier, when the rate stood at 9.1%.
In the EU, the annual inflation rate was 5.9% in August, down from 6.1% in July. A year ago, the rate stood at 10.1%.
Compared with July, annual inflation fell in 15 EU member states in August, remained stable in one, and rose in 11.
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The highest annual rates of inflation were recorded in Hungary (14.2%), Czechia (10.1%) and Slovakia (9.6%), with mainly Eastern European countries featuring at the higher end.
However, Germany's inflation rate also exceeded the EU average at 6.4%, while the lowest annual rates of inflation were registered in Denmark (2.3%), Spain and Belgium (both 2.4%).
The highest contribution to the annual euro area inflation rate came from services (+2.41pp), followed by food, alcohol and tobacco (+1.98pp), non-energy industrial goods (+1.19pp) and energy (-0.34pp).
Charles Hepworth, investment director at GAM Investments, said that although inflation slowed more than the previous initial estimate, it still remains «stubbornly above» the European Central Bank's target rate of 2%.
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«With an accompanying oil price spike seen over the last few months, this will continue to raise headaches for the ECB's Governing Council,» he said.
«The direction of travel however in inflation will undoubtedly be the welcome silver lining amid this cloud of inflation uncertainty. Rates are
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