FRANKFURT, Germany (AP) — Annual inflation held steady in Europe in August as food prices raced ahead of falling fuel costs, but there was no clarity about whether the European Central Bank will pause its record series of interest rate hikes.
The consumer price index for the 20 countries that use the euro currency was unchanged at 5.3% from the July reading, supported by food, alcohol and tobacco prices that increased a painful 9.8% since last August, according to official figures Thursday from EU statistics agency Eurostat.
Another key inflation number — so-called core inflation that leaves out volatile fuel and food — also eased in August, falling to 5.3% from 5.5%. That figure will be a key consideration for the ECB in deciding whether interest rates need to go higher or can remain unchanged while bank officials assess the impact of higher rates on growth.
© OfficialAffairs
