Inflation in the eurozone decreased to a three-year low of 2.2% in the year to August, according to data from Eurostat released on Wednesday. This follows the European Central Bank's (ECB) decision to cut interest rates, but inflation remains slightly above the ECB's 2% target.

Key Highlights:
Eurozone Consumer Prices Index (CPI) fell from 2.6% in July to 2.2% in August.
Inflation across the European Union also decreased to 2.4%, down from 2.8% in July.
The lowest annual inflation rates were recorded in Lithuania (0.8%) and Latvia (0.9%), while Romania saw the highest rate at 5.3%.
The ECB recently lowered its benchmark interest rate to 3.5% and has signaled potential future cuts.
Despite the drop, inflation levels continue to pressure the ECB's monetary policy, with the central bank maintaining its inflation forecast for this year at 2.5% and 2.2% for next year.
Comments