Inflation in the eurozone remained stagnant in August,according to a preliminary reading released by Eurostat on Wednesday morning.
Consumer price inflation, the key measure of price growth, came in at just 0.2% year-on-year in August, a disappointing reading against forecasts, which had predicted growth of 0.3% in the month. July’s final inflation reading also sat at 0.2%.
On a year-to-year basis core consumer prices grew by 0.8%, against a forecast of 0.9%, and a previous reading of the same number, also disappointing against forecasts.
Core prices are an important measure because they strip out the most volatile items — things like fuel and food prices, which are subject to massive variations.
“Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in August (1.3%, compared with 1.4% in July), followed by services (1.1%, compared with 1.2% in July), non-energy industrial goods (0.3%, compared with 0.4% in July) and energy (-5.7%, compared with -6.7% in July),” Eurostat said in a release.