Eurozone core inflation has edged down, compounding the dilemma for the European Central Bank over whether to continue the biggest set of interest rate rises since the creation of the single currency.
The EU’s statistical office said on Thursday that overall inflation for the region was unchanged at 5.3 per cent in the year to August, but noted that prices excluding energy and food cooled.
The figures come ahead of the ECB’s September 14 meeting, when it faces one of its most finely balanced decisions in years: whether to risk pushing the eurozone economy into a painful recession by raising rates further, or allow inflation to become entrenched far above its 2 per cent target.
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