Euro area inflation sees 2.2% fall in August amid lower energy prices

Euro area annual inflation is expected to fall to 2.2 per cent in August 2024, down from 2.6 per cent in July, according to a flash estimate by Eurostat, the European Union’s statistical office.

The drop would be primarily driven by a sharp fall in energy prices, which decreased by 3.0 per cent compared to a 1.2 per cent increase in July.

Among the main components of inflation, services saw the highest annual rate at 4.2 per cent, up from 4.0 per cent in July.

Food, alcohol, and tobacco inflation edged up slightly to 2.4 per cent, while non-energy industrial goods inflation fell to 0.4 per cent from 0.7 per cent in the previous month.

Attribution: Eurostat

Subediting: Y.Yasser