2016.09.1511:26:00UTC+00Eurozone August Inflation confirmed at 0.2 Pct

There were no surprises from Eurozone CPI data in August. Data from Eurostat released on Thursday confirmed the annual pace of inflation in the Eurozone at 0.2 percent in August, unchanged from July. For the wider European Union, the pace is a slightly higher 0.3 percent, up slightly on July.

Details of the report showed that the deepest deflation came from Croatia, Bulgaria and Slovakia, while the highest inflation was in Belgium, Sweden and Estonia.

Eurozone inflation has not risen above 0.3 percent in 2016, pointing to persistent low inflation. The ECB has been reluctant to adopt further monetary easing, but may have to consider hinting at further action to restore market confidence in a Eurozone economy which is beset by weak growth and low inflation.

“We think the August data marks a temporary pause in the upward momentum which began in Q2, and see higher inflation ahead. The core rate should edge higher in the next six-to-12 months, and base effects will boost the year-over-year rate in energy prices further.” said Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics.