Euro‑area inflation edged to 2.1% in August, with core inflation steady near 2.3%. The mix keeps the European Central Bank on track to hold rates this month, even as growth remains subdued.
Why it matters
With price growth hovering around target, the ECB has room to pause and assess the impact of past easing and tariff‑related pressures on services.
By the numbers
- Headline HICP: 2.1% (from 2.0%).
- Core HICP: ~2.3%, little changed.
- PMIs show sluggish expansion; confidence still below long‑run averages.
What to watch
- ECB tone on underlying services inflation and wage drift.
- Energy base effects into Q4 and 2026 wage rounds.
- Any signal on the timing of the next policy move if growth softens.
Source reporting: Eurostat flash data and Reuters survey coverage.