Inflation in the euro area dropped in August, according to figures released by Eurostat, the statistical office of the European Union.
A flash estimate from the body showed inflation was down from 1.6 per cent in July to 1.3 per cent in August, showing the recovery of the European economy may be strengthening.
The organisation stated that food, alcohol and tobacco are expected to have the highest annual rate in August, with inflation of 3.3 per cent, down from 3.5 per cent in the previous month.
Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland make up the euro area.
Eurostat revealed that services inflation was 1.5 per cent in August, compared with 1.4 per cent in July.
Figures recently showed that the inflation rate in the UK fell during July, although it remains well above the two per cent target.
The Office for National Statistics announced that inflation dropped from 2.9 per cent in June to 2.8 per cent in July.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.