The Eurozone annual inflation rate has been estimated at 1.5% in August, compared to 1.3% in July, according to a flash estimate published by the statistical office of the European Union (Eurostat), on Thursday 31 August.
Looking at the main components of Eurozone inflation, energy is expected to see the highest annual rate in August (4.0%, compared to 2.2% in July), followed by services (1.6%, unchanged from July), food, alcohol & tobacco (1.4%, unchanged from July) and non-energy industrial goods (0.5%, also unchanged from July).
As underlying inflation (not including energy and food prices) remains at a moderate level, it is unlikely that the Governing Council of the European Central Bank will announce any tightening-up of its accommodative monetary policy, at its first meeting back after the summer break, on Thursday 7 September.
With the euro and pound sterling practically level-pegging, the ECB may put out feelers for initial discussions on a phasing-out of the 'quantitative easing' operation for the mass buyback of mainly public securities. (Original version in French by Mathieu Bion)