According to the latest data from Eurostat, annual inflation in the eurozone remained stable in August at 5.3%, the same as in July, despite falling energy prices and a slight slowdown in food price growth, reports Euronews, as quoted by Rador.

This figure exceeds the expectations of analysts Factset and Bloomberg, who on average expected a slowdown to 5.1%.

Inflation in the 20 countries with a single currency remains well above the 2% target set by the European Central Bank.

In August, the national consumer price index for the whole community (NIC) registered an increase of 0.4% month-on-month and 5.5% month-on-month, compared to +5.9% month-on-month, Istat reported. according to preliminary estimates.

The slowdown is caused, among other things, by the annual decrease in prices for unregulated energy products (from +7.0% to +5.7%), which include fuel, gas and electricity on the free market, unprocessed food products (from +10.4 %). % to +10.4%). +9.2%) and finished products (from +10.5% to +10.1%).

The economy remains weak

In this context, confidence in the prospects of the European economy is falling both in the production sector and on the part of consumers. Data published by the European Commission indicate a decrease in the Economic Sentiment Indicator (ESI) by 1.2 points in the Eurozone and by 0.6 points in the EU.

The decrease recorded in Italy was 1.1 points, less than in France (-2.5) and Germany (-2.4).

The data released by Brussels also indicated a reduction in expectations for employment trends, particularly in the services, construction and retail sectors.

The Energy Efficiency Index (EEI) decreased by one point in the EU and by 1.3 points in the Eurozone. Contrasting signals are also on price forecasts: last fall’s downward trend has stopped in services and trade, while expectations are rising in industry and construction.

Also according to Eurostat, the seasonally adjusted unemployment rate in the euro area was 6.4% in July 2023, remaining stable compared to June 2023 and down from 6.7% in July 2022.

According to the estimates of the statistical office, in July 2023, 12.928 million people were unemployed in the EU, of which 10.944 million were in the euro area. Compared to June 2023, unemployment increased by 35,000 units in the EU and by 73,000 in the Eurozone. (photo: Dreamstime)