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.

Find out about the euro and forex trading at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.