ATION dipped in the Eurozone in August, according to official statistics released yesterday, and remains well below the target of the European Central Bank (ECB).
The euro area’s consumer price index (CPI) fell from 1.6 per cent to 1.3 per cent in comparison to the same month last year, with core inflation at only 1.1 per cent.
The ECB’s target aims for inflation to be at just below two per cent, but CPI has now been below that level for most of 2013.
James Howat of Capital Economics commented: “While a recovery seems to be underway, the Eurozone still faces a long internal adjustment that will keep a lid on price pressures for some time yet.”
Inflation is highest in the Netherlands, where prices have risen by 2.8 per cent in the past year. Greece is still seeing falling prices, with one per cent deflation between August 2012 and August 2013.