Eurozone inflation fell to its lowest level in three years this month, reinforcing expectations of another interest rate cut by the European Central Bank (ECB) in September.

According to preliminary data released by the European statistics agency Eurostat Friday, inflation in the 20 countries that use the single currency fell to 2.2 percent from 2.6 percent last month, in line with expectations, as lower energy costs pushed inflation closer to the European Central Bank’s 2 percent target after three years of excessive price growth.

The data show that the core figures present a more complicated picture, as inflation accelerated in services, a factor that may continue to worry some ECB policymakers about wage growth in this sector.

Core inflation, which excludes volatile food and energy costs, also eased to 2.8 percent from 2.9 percent the previous month, in line with expectations, as softer imported goods prices offset a rise in services inflation to 4.2 percent from 4 percent.

Source: Qatar News Agency