Euro area inflation fell in August but services prices continue to rise

The annual inflation rate in the euro area is expected to fall to 2.2% in August 2024 from 2.6% in July, according to preliminary data from Eurostat, the statistical office of the European Union. Among the components of inflation, services prices rose the most (4.2% compared with 4.0% in July), followed by food, alcohol and tobacco (2.4% compared with 2.3% in July). Non-energy industrial goods, on the other hand, are expected to fall (0.4% compared with 0.7% in July), while energy prices are expected to fall significantly (-3.0% compared with 1.2% in July).