Eurozone: Inflation Drops to 2.2%
Annual inflation in the eurozone declined, reaching 2.2% in August 2024, down from 2.6% in July. The report comes from the operational assessment of the Statistical Office of the European Union (Eurostat). This is the lowest in three years, a trend that could lead to a new cut in interest rates at the European Central Bank (ECB) meeting in September, as the institution has set its inflation target at 2%.
Inflation rates related to services (4.2% vs. 4.0% in July) and food, alcohol, and tobacco (2.4% vs. 2.3% in July) rose modestly, while non-energy manufactured goods declined (0.4% vs. 0.7%) and especially energy (-3.0% vs. a 1.2% increase in July).
Italy’s August inflation rate was 1.1%, Spain’s 2.4%, Germany’s 1.9%, and France’s 2.2%.
