Euro zone inflation for August 2025
European consumers face higher prices on their way to supermarket.
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Euro zone inflation rose to 2.1% in August, according to the latest flash data of the Eurostat Statistical Agency on Tuesday.
Economists who participated in the survey by Reuters expected the rate to remain unchanged from July to 2%.
More variable food, energy, alcohol, and tobacco prices, the core inflation did not change from 2.3% in July. In the meantime, the pressure of the services closely monitored was slightly lower in August, 3.2% in July compared to 3.2%.
With 2.1%, the latest inflation rate of the euro zone is slightly higher than the 2%target of the European Central Bank.
The euro fell 0.6% against the dollar, $ 1,1640. Pan-Europe Stoxx 600 Tuesday morning was traded by 0.7% lower.
According to the majority of the economists participating in the survey by Reuters, the Central Bank realized its basic interest rate at 2% in July and is expected to continue this stance in September.
The EU’s trade agreement with the US, signed in late July, has eliminated uncertainty on tariffs, although there are some concerns that 15% of the EU exports to states can still focus on economic activities.
Eurostat data in late July, the euro zone in the second quarter of 0.1% growth recorded.
ECB ratio is likely to pause
On Tuesday, on Tuesday, Capital Economics Chief Andrew Kenningham, the Capital Economics Chief Andrew Kenningham, stated on Tuesday, Tuesday, on Tuesday.
“At the meeting of the next week, interest rates are unchanged at the meeting of the next week, and probably seem uninterrupted for a few months,” ECB said.
“Most importantly, for the ECB, the service inflation has fell a touch from 3.2% to 3.1% in August in July. This is the lowest service inflation rate since March 2022, and it should provide some assurance for the policy makers where the pressures of common prices continue to decrease.” He said.
“We will preview the upcoming meeting of the ECB later in the week, but in short, the bank is likely to leave the rates for a while.” He said.
Irene Lauro, the Euro Regional Economist in Schroders, admitted that ECB would take time while thinking about orbit for interest rates.
“As the trade alleviates uncertainty, the recovery of the euro region will begin to accelerate as companies increase borrowing and investment. ECB is likely to be carefully kept carefully in September. Flexibility in the nucleus inflation, policy normalization ends and supports our view that ECB will follow the growth dynamics before making the next movement.”
