- Howard Archer, an economist at IHS Global Insight
Consumer Price Index (CPI) for the Eurozone countries grew by 2.6% from a year ago in August, Eurostat announced on Friday. On a monthly basis, CPI inflation rose by 0.4% from -0.5% in July, in line with analysts' expectations. However, region's inflation rate remains above the ECB's 2% target level for this year.
"While the ECB won't be pleased with the rise back up to 2.6 percent in euro zone consumer price inflation in August, the bank will be reassured to see that the increase was driven by a sharp move back up in energy prices and that core inflation actually moderated," said Howard Archer, an economist at IHS Global Insight.
"Indeed, the underlying inflationary environment is far from alarming given extended weak economic activity, widespread low capacity utilization and generally muted wage growth amid high and rising euro zone unemployment."
The Stoxx Europe 600 Index fell 0.18 per cent to 272.42. Germany's DAX Index erased 0.45 per cent to 7,310.32 and France's CAC 40 Index lost 1.18 per cent to 3,502.09.
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