Eurozone inflation fell to a three-year low of 2.2 percent in the 12 months to August, confirming a preliminary estimate from two weeks ago.
However, despite the European Central Bank's (ECB) interest rate cuts, inflation remains above the ECB's target of 2%.
Eurostat said on Wednesday that the Consumer Price Index (CPI) fell from 2.6% in July, while inflation across the European Union fell to 2.4% from 2.8% in July. Year-ago inflation was 5.9%.
The lowest annual rates were in Lithuania (0.8%), Latvia (0.9%), Ireland, Slovenia and Finland (all 1.1%).
The highest annual inflation rates were recorded in Romania (5.3%), Belgium (4.3%) and Poland (4.0%). Compared to July 2024, annual inflation rates fell in 20 Member States, remained stable in one and rose in six.
A separate statement said preliminary figures showed seasonally adjusted production and construction figures were stable in the euro area in July, with the EU as a whole up 0.2 percent compared to June.
On an annual basis, output in the euro area fell by 2.2% and in the EU by 2.4%.
This comes after the ECB cut interest rates for the second time this year, to 3.5% last week. ECB President Christine Lagarde said the decision to cut the base deposit rate was “unanimous.”
The governor suggested further rate cuts were expected but said a cut at the October meeting was unlikely.
The central bank kept its inflation forecast for this year at 2.5% and next year at 2.2%.
read more: UK inflation stabilizes at 2.2% ahead of interest rate decision
Britain's Office for National Statistics (ONS) said on Wednesday that inflation rose above the Bank of England's 2% target last month, as rate setters prepare to announce their next interest rate decision.
Data from the Office for National Statistics showed the Consumer Price Index (CPI), which tracks changes in costs across the economy, rose 2.2% in the year to August.
Core CPI, which excludes energy, food, alcohol and tobacco, rose 3.6% over the 12 months to August 2024, up from 3.3% in July. Economists had been expecting core inflation to rise at a lower rate of 3.5%.
This came a day before rate setters at the Bank of England prepare to announce their next interest rate decision.
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