Eurozone inflation rises to 2.1 percent in August

Brussels – Inflation rose slightly in the euro area in August, preliminary estimates released by Eurostat show. According to the European Statistical Institute, a 0.1 percentage point increase is expected compared to July, resulting in an overall inflation rate of 2.1 percent. Driving up the cost of living is above all energy (-1.9 percent, compared to -2.4 percent in July). Among the main components of inflation, there was a slight decrease for food, alcohol, and tobacco (3.2 percent in August, compared to 3.3 percent in July) and services (3.1 percent, compared to 3.2 percent in July). The index for non-energy industrial goods was stable (0.8 percent). 

At the country level, an increase in inflation is expected in Germany (+0.3 percentage points, from 1.8 percent to 2.1 percent), while stable inflation is expected for Italy and Spain (1.7 percent and 2.7 percent, respectively). Slight declines are expected in France (-0.1 percentage points, from 0.9 percent to 0.8 percent). 

Final data will be released on 17 September, after the meeting of the Governing Council of the European Central Bank scheduled for 11 September. The ECB will therefore have to rely on preliminary data for its monetary policy decisions and, in particular, its interest rate policy.