2010.08.3106:05:00UTC+00Eurozone Inflation Eases In August

Eurozone annual consumer price inflation eased in August, a preliminary report by the Eurostat showed on Tuesday.

The consumer price index rose 1.6% year-on-year in August, but slower than a 1.7% rise in the previous month. Annual inflation came in line with economists' expectations. The European Central Bank targets inflation rates of 'below, but close to, 2%' over the medium term.

In August's introductory statement, ECB President Jean-Claude Trichet had said monetary analysis confirms that inflationary pressures over the medium term remain contained. ECB policymakers continue to expect price developments to remain moderate over the policy-relevant medium-term horizon.

The ECB is widely expected to leave its key interest rate unchanged at a record-low of 1% on September 2, when its Governing Council review monetary policy.

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