Euro area: August inflation review

According to Eurostat's final release , the Euro area annual headline inflation stabilized at 2.0 4 % in August (vs. flash 2.05%) , unchanged from July. Core inflation, which excludes energy and food, alcohol and tobacco prices, held at 2.27% ( according to flash estimate ) , below 2.31% in the previous month. HICP inflation by components showed: The contribution of Services to annual headline inflation decreasing to 1.41pp (1.44pp in July). The contribution of Food, Alcohol and Tobacco going down to 0.62pp (0.63pp in July). The contribution of the Energy inflation at -0.18pp (-0.22pp in July). Non-Energy Industrial Goods (NEIG) contribution rising to 0.20pp (0.19pp in July). Should the price level of headline HICP remain at its August level until end-December 2025, headline inflation would average 2.0 8 %yoy over 2025 and stand at 1,7 6 %yoy in December.