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Despite the decrease, inflation still remains far above the European Central Bank’s 2% objective.
The annual rate of inflation in the eurozone has been revised down for August to 5.2%, according to the latest figures from Eurostat.
ADVERTISEMENTThe revision published on Tuesday means rising consumer prices are 1% lower than they were in July.
Inflation in the 20 eurozone countries has halved since it reached a record 10.6% in October 2022, when the effects of Russia’s war in Ukraine on gas and oil prices were at their height.
Nevertheless, it still remains far above the European Central Bank’s (ECB) 2% objective.
As for the EU, inflation hit 5.9% in August after 6.1% July.
In an attempt to stem the surge in consumer prices, the ECB has embarked on an unprecedented quest to tighten the belt.
Last Thursday, it raised its benchmark interest rate to 4%, its highest level since 1999.
But the severity of the economic slowdown, exacerbated by the rise in interest rates, is sparking debate over whether or not the tightening should continue.
The European Commission last week reduced its economic growth forecasts for the eurozone by 0.3 points to 0.8% in 2023 and 1.3% in 2024.
Brussels now expects consumer prices to rise by 5.6% in 2023 (-0.2 points, compared with the last forecasts in May) and by 2.9% in 2024 (+0.1 points).
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