Inflation HICP (Harmonized Index of price (consumer) in the eurozone in August 2024 amounted to 2.2 percent year-on-year, compared to 2.6 percent a month earlier – it was reported on Friday, August 30 Eurostat. This is the lowest since July 2021. This means that inflation in the eurozone is very close to the European Union's inflation target. Bank Central (2%).
Inflation in the Eurozone. Strong growth in the prices of services
In August, the prices of services rose the most (4.2% compared to 4% in July). Food, alcohol and tobacco prices rose by 2.4% (compared to 2.3% in July). Industrial goods rose by 0.4% (compared to 0.7%). Energy prices fell. In August, they were 3% lower year-on-year (compared to an increase of 1.2% in July), reads Eurostat's statement.
The increase in service prices translates into high core inflation (i.e. excluding food, fuel and energy). In July, the eurozone core inflation amounted to 2.8 percent year-on-year (the same as in June; in May it was 2.9 percent).
Eurozone Inflation: What Will the European Central Bank Do About Rates?
The market expects that the European Central Bank may decide to cut interest rates by 25 basis points in September, it says. CNBCIn June, the ECB cut rates by 25 basis points, the first cut in several years.
The interest rate on the main refinancing operations is currently 4.25 percent, the rate credit at the central bank is 4.50 percent, and the deposit rate is 3.75 percent. The next meeting is scheduled for September 12.