Eurozone inflation slips in August

01 Sep, 2018

Inflation in the eurozone slowed to two percent in August, data showed on Friday, as high oil prices fell back slightly. Eurostat said consumer prices in the 19-country single currency bloc edged lower from 2.1 percent in July, leaving inflation on level with the European Central Bank's (ECB) target of near or lower than 2.0 percent.
Inflation was in line with forecasts and will confirm expectations that the ECB's massive stimulus programme to prop up prices in the eurozone will come to a close in December.
However, closely watched core inflation - which strips out energy, food, alcohol and tobacco - fell to 1.0 percent in August, from 1.1 percent in the previous month.
Eurostat also said that unemployment in the eurozone remained stable in July at 8.2 percent, the lowest rate since November 2008 and the earlier stages of the financial crisis.
Unemployment in the 28 member countries of the European Union fell to 6.8 percent.
Joblessness in the area has been falling steadily since it fell below the symbolic threshold of 10.0 percent in September 2016. However, it is still higher than the average rate before the global financial crisis, when it stood at 7.5 percent. Among the 19 single currency countries, the lowest unemployment rates in July was recorded in Germany at 3.4 percent, according to Eurostat.

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