The EU statistics agency revealed a slight slowdown in Eurozone inflation for August.
Initially reported at 5.3%, it has now been revised down to 5.2%, compared to July’s 5.3%. This news comes as a potential relief amidst growing concerns over rising prices in the 20-country single currency area.
Food and drink prices, which had previously been stated as increasing by 9.8% in August, were revised to a slightly lower 9.7%, according to Eurostat’s latest data.
Expanding beyond the Eurozone, the inflation rate across the 27-nation European Union also saw a reduction, dropping from 6.1% in July to 5.9% in August.
Despite these improvements, inflation still significantly overshadows the European Central Bank’s official target of two percent, despite the bank implementing a series of unprecedented rate hikes.
Just last week, the European Commission released its inflation forecast, predicting a rate of 5.6% for 2023 and a decline to 2.9% in 2024. However, even with these adjustments, the challenge of controlling inflation remains a significant concern.
The European Central Bank recently increased its key interest rates by another 25 basis points, signaling its determination to address the issue.