📌 The Eurozone Moves Toward Stability: Inflation Hits Its Lowest Point Since 2021
📊Annual inflation in the Eurozone rose by 2.2% in August 2024, slowing down from the 2.6% recorded in July. This outcome, which aligns with market expectations, marks the most moderate increase in consumer prices since July 2021. This figure reflects significant progress toward the 2% target set by the European Central Bank (ECB), a crucial milestone in the fight against the persistent inflation that has challenged the region in recent years.
📊However, it is important to consider the base effect when interpreting these figures. In countries like Spain and the United States, inflation in August 2023 was already around 3%, whereas in the Eurozone, comparisons are still being made against levels that exceeded 5%, which could lead to a less accurate perception of real progress. We will need to wait for the October and November data to gain a clearer view and confirm whether this trend toward stability holds.
📊Finally, core inflation, which excludes energy and unprocessed food prices, also shows signs of easing, with a rise of 2.8%. Although this figure remains above the ECB’s target, it is significantly lower than the peaks observed earlier, suggesting that the more severe inflationary pressures may be subsiding, paving the way for a more balanced monetary policy in the Eurozone.
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