Euro area inflation falls to 2.2% in August

The euro area annual inflation rate fell to 2.2 per cent in August 2024, down from 2.6 per cent in July 2024 and significantly lower than the 5.2 per cent recorded a year earlier, according to the EU statistical office on Wednesday.

Inflation in the European Union stood at 2.4 per cent in August from 2.8 per cent in July, compared to 5.9 per cent a year ago.

Lithuania reported the lowest annual inflation rate at 0.8 per cent, followed by Latvia at 0.9 per cent, and Ireland, Slovenia, and Finland at 1.1 per cent.

Conversely, Romania faced the highest inflation at 5.3 per cent, with Belgium and Poland at 4.3 per cent and 4.0 per cent, respectively. Annual inflation decreased in twenty Member States, remained stable in one, and increased in six.

The euro area’s inflation was primarily driven by services, followed by food, alcohol, and tobacco, non-energy industrial goods, and energy.