Eurozone core inflation came in slightly hotter than expected, with a reading of 5.3% on core prices year-on-year for August.
Economists had expected a reading of 5.1%, a cooling off from the previous month, which also saw inflation come in at 5.3% year-on-year.
The Consumer Price Index (CPI) measures the change in the prices of goods and services contained in a basket of consumer items. Central banks pay very close attention to this figure in its role of maintaining price stability. This will increase bets of interest rate rises by the European Central Bank.
The euro fell 0.5% against the dollar (EURUSD=X) on the news, heading towards the $1.08 mark.
Among the basket of goods measured, alcohol, processed food and tobacco saw the biggest bump in price point, increasing by more than 10% year-on-year in August.
Services inflation was also among the stickiest, registering 5.5% in August – above the overall average.
Meanwhile, energy inflation fell 3.3% as the market continues to recover following price surges spurred on by Russia's invasion of Ukraine. Prices had registered a fall of more than 6% the month before.
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