Eurozone: Inflation Rate Reaches 2.1% in August, Exceeding Expectations

In August, the inflation rate in the eurozone rose to 2.1%, surpassing expectations. This increase was primarily driven by a 5.5% rise in unprocessed food prices, up from 5.4% in July. Additionally, the decline in energy costs slowed to 1.9%, compared to a 2.4% drop the previous month. Conversely, the inflation rate for services slightly decreased to 3.1%, down from 3.2%. Prices for processed food, alcohol, and tobacco also saw a minor slowdown, rising by 2.6% compared to 2.7% in July. Industrial goods excluding energy remained stable at 0.8%. Core inflation, which excludes energy, food, alcohol, and tobacco, held steady at 2.3%, marking its lowest level since January 2022.