Eurozone's annual inflation unchanged at 2% in August, below expectations

By Mucahithan Avcioglu

ISTANBUL (AA) -The annual consumer inflation rate in the euro area was 2% in August, stable from the previous month, according to a preliminary estimate from Eurostat on Wednesday.

The figure again matched the European Central Bank's (ECB) medium-term target, and it was below market expectations of 2.1%.

The biggest upward driver of inflation was food, alcohol, and tobacco (3.2%) in August, followed by services (3.1%) and non-energy industrial goods (0.8%).

On the other hand, energy prices were the biggest downward contributor to inflation, down 2% annually.

The core inflation rate, which excludes volatile food and energy prices, rose 2.3% annually, stable from the previous month and matching estimates.

Romania had the highest annual rate with 8.5% in August, followed by Estonia with 6.2% and Croatia with 4.6%.

On the other hand, the lowest inflation rate was seen in the Greek Cypriot Administration, with 0%, followed by France (0.8%) and Italy (1.6%).

On a monthly basis, the consumer price index rose 0.1% in August, up from 0% in July, but below market estimates of 0.2%.

The eurozone/euro area, or EA20, represents member states that use the EU's single currency, the euro.