Euro area annual inflation unexpectedly stable in August

By Tuba Ongun

The euro area annual consumer inflation rate surprisingly remained stable at 5.3% in August, according to flash estimates released by the bloc's statistical office on Thursday.

The market estimated inflation would decrease to 5.1% in August from 5.3% in July.

Annual decrease in energy prices eased in August to 3.3% from 6.1% in July, Eurostat data showed.

Food, alcohol, and tobacco prices were expected to hike 9.8% compared to last year in August after a 10.8% rise in July.

The annual core inflation rate, which excludes energy, food, alcohol, and tobacco, came in at 5.3% in August, down from July's 5.5%.

On a monthly basis, the euro area consumer prices index increased 0.6% in August.

The cost of energy in the single currency zone is estimated to have climbed 3.2% month-on-month.