Euro Area: Harmonized inflation increases in August
Latest reading: Harmonized inflation edged up to 2.1% in August, above July’s 2.0%. Market expectations were for inflation to remain at the ECB’s 2.0% target for the third consecutive month. Looking at the details of the release, energy prices dropped at a less pronounced pace. That said, services price growth moderated.
The trend was unchanged, with annual average harmonized inflation coming in at July’s 2.1% in August. Meanwhile, core inflation was stable, coming in at July’s 2.3% in August.
Lastly, harmonized consumer prices rose 0.15% from the previous month in August, accelerating from the 0.02% rise recorded in July.
Outlook: Our panelists expect inflation to remain around target throughout the remainder of the year, tamed by muted oil prices.