European consumers are exposed to higher prices in the supermarket.
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The inflation of the euro zone rose in August after the latest Flash data from the Statistics Authority Eurostat on Tuesday in August.
Economists surveyed had expected that the Set of July had remained unchanged by July at 2%.
The core inflation that causes more volatile food, energy, alcohol and tobacco prices remained unchanged compared to 2.3% in July. The densely observed service pressure was slightly lower in August in August, 3.1% compared to 3.2% in July.
At 2.1%, the latest inflation rate of the euro zone is only slightly higher than the goal of the European Central Bank of 2%.
The euro was $ 1.1640 $ 0.6% compared to the dollar. The Pan-European Stoxx 600 was 0.7% lower on Tuesday morning.
The central bank kept its most important interest rate in July at 2% and is expected to maintain this attitude if it meets in September, according to the majority of the economists surveyed by Reuters.
The EU trade agreement with the United States, which was signed at the end of July, has removed the uncertainty about tariffs, although there are some concerns that the ceiling could still weigh up 15% of EU exports to the states.
The euro zone achieved growth of 0.1% in the second quarter compared to the previous quarter that Eurostat data showed at the end of July.
ECB rate break probably
The slight increase in headline inflation in August is unlikely that the political decision -makers at the ECB will make a big difference at the next meeting.
The political decision -makers of the ECB “seem to leave interest rates unchanged at the meeting of the next week and probably probably for a few months,” he said in an e -mail analysis.
“The most important thing for the ECB was also the inflation of 3.2% in July to 3.1% in August. This has been the lowest inflation of the services since March 2022 and should provide certain confirmation for political decision -makers that domestic prices continue to let the pressure decrease,” he said that the inflation of the services would continue to decrease in the coming months if the labor markets would go to the market.
“We will drive the upcoming meeting of the ECB later a week, but the bank should quickly leave the tariffs on hold for some time,” he said.
Irene Lauro, economist of the euro zone at Schroders, agreed that the ECB would take its time if it took into account the trajectory for interest rates.
“With the loosening of trade uncertainty, the recovery of the euro zone will gain dynamics when companies increase borrowing and investments. In this environment, the ECB will probably be kept carefully in September. The resilience in core inflation supports our view that the normalization of the guidelines is ended, and the ECB will overcome the growth dynamics before it moves in the next step,” it said in E -mail comments.
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