European inflation climbs in August

<p>Inflation in the European Union climbed in August to 2.7 per cent month-on-month.</p>

European Union (EU) inflation levels climbed in August to 2.7 per cent month-on-month, according to the region's official statistics bureau.

Eurostat revealed this is compared to the 2.5 per cent rise in July.

Inflation in the 17-nation eurozone also increased to 2.6 per cent month-on-month in August after rising by 2.4 per cent in July.

Employment across the single currency region remained stable at 146.4 million in the second quarter of the year, while the number of people in work across the wider EU area over this timeframe rose to 223.4 million.

The number of jobless individuals hit a new zenith of 18 million in July, prompting calls for the European Central Bank to slash the cost of borrowing to encourage cash flow around the eurozone.

Due to increasing population numbers, it is possible for employment and joblessness figures to rise simultaneously.

At 11:40 BST, the euro was higher in forex trading with both the pound and the dollar, climbing 0.7 per cent against the greenback with €1 buying $1.308, while the single currency appreciated by 0.2 per cent versus sterling to £0.806.

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