Euro Area CPI inflation confirmed at 2.2% in August

The annual CPI inflation rate in the Euro Area was confirmed at 2.2% in August, while easing from 2.6% in July.

August’s rate has been the lowest since July 2021.

Last month, inflation picked up for services (4.1% YoY from 4% YoY in July), while it remained steady for food, alcohol & tobacco, at 2.3%.

In the meantime, inflation eased for non-energy industrial goods (0.4% YoY from 0.7% YoY in July).

Cost of energy dropped in August, by 3% YoY.

Annual core CPI inflation, which excludes volatile categories such as food and energy, eased to 2.8% in August from 2.9% in July. It also matched the preliminary estimate.

The Euro was last 0.32% weaker on the day against the British Pound, with the EUR/GBP currency pair trading at 0.8416 ahead of the Bank of England policy meeting outcome.