2025.09.1709:10:03UTC+00Eurozone Inflation Revised Slightly Lower to 2%

Euro area consumer price inflation registered at 2.0% in August 2025, marginally below the preliminary estimate of 2.1%, due to a sharper-than-anticipated decline in energy costs. This marks the third consecutive month that headline inflation has aligned with the European Central Bank’s 2% target, supporting the outlook that monetary policy is likely to remain unchanged for the foreseeable future. The price changes varied across different categories: inflation for unprocessed food increased slightly to 5.5% from 5.4% in July, while energy prices experienced a 2.0% decline following a 2.4% drop in the prior month. Inflation in the services sector eased to 3.1% from 3.2%, and prices for processed food, alcohol, and tobacco rose by 2.6%, a slight decrease from 2.7%. Inflation for non-energy industrial goods remained steady at 0.8%. Core inflation, which excludes food, energy, alcohol, and tobacco, remained stable at 2.3%, marking its lowest level since January 2022.