Eurostat, the statistical office of the European Union, recently reported that annual inflation in the eurozone rose to 2.1% in August, according to the preliminary reading. This is below the July reading of 2%, as expected.
The largest contribution to inflation in August came from the food, alcohol, and tobacco sector, which rose at an annual rate of 3.2%, up from 3.3% in July. The services sector rose by 3.1%, up from 3.2%. The non-energy industrial goods index remained at the same level as in July, at 0.8%, while the energy index continued to decline, declining by -1.9% from -2.4%, for the sixth consecutive month.
The core index, which excludes food and energy prices, remained at its July level of 2.3%, better than the 2.2% forecast.