The annual inflation rate was at 5.2% in the euro area in August, below the market expectations. According to official figures from Eurostat, the rate dropped from 5.3% in July this year and 9.1% in August 2022. The inflation rate was also at 5.9% in the European Union, down from 6.1% in July this year and 10.1% in August 2022.
The lowest annual rates were seen in Denmark (2.3%), Spain and Belgium (both 2.4%) while the highest rates were posted by Hungary (14.2%), Czechia (10.1%) and Slovakia (9.6%). Compared with July, annual inflation dropped in 15 member states, remained stable in one, and increased in 11, it added. “In August, the highest contribution to the annual euro area inflation rate came from services (+2.41 percentage points, pp), followed by food, alcohol & tobacco (+1.98 pp), non-energy industrial goods (+1.19 pp) and energy (-0.34 pp),” it noted.—AA
