Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

'Macron-economy' pun already worn out

Read more

DEBATE

What Next for Gaza? Lasting Ceasefire Agreed After 50 Days of War (part 2)

Read more

DEBATE

What Next for Gaza? Lasting Ceasefire Agreed After 50 Days of War

Read more

FOCUS

Video: Milan is starting point for Syrian refugees’ European odyssey

Read more

MIDDLE EAST MATTERS

Terrorist ransoms: Should governments pay up for hostages?

Read more

ENCORE!

Kristen Stewart and Juliette Binoche star in 'Clouds of Sils Maria'

Read more

WEB NEWS

India: journalist launches "Rice Bucket Challenge"

Read more

WEB NEWS

Russian aid convoy: Mission accomplished?

Read more

WEB NEWS

Actor Orlando Jones lauches 'Bullet Bucket Challenge'

Read more

  • Mother of American journalist asks IS leader for his release

    Read more

  • UN probe accuses Syrian regime, Islamists of ‘crimes against humanity’

    Read more

  • French unemployment rises 0.8% in July to record high

    Read more

  • France’s Hollande puts young ex-banker in top economy post

    Read more

  • Video: Iraq’s Yazidis flee to spiritual capital of Lalish

    Read more

  • Video: Milan is starting point for Syrian refugees’ European odyssey

    Read more

  • Airstrikes and Assad - Obama’s military conundrum in Syria

    Read more

  • IMF’s Lagarde investigated in French corruption case

    Read more

  • American journalist held captive in Syria arrives in US

    Read more

  • In pictures: The ministers in France's new government

    Read more

  • 'Lasting' ceasefire agreed for Gaza, Abbas says

    Read more

  • Far-right ‘Russian Jihad’ fighters cross into Ukraine

    Read more

  • Rebels 'shoot down' UN helicopter in South Sudan

    Read more

  • Air France pilots threaten September strike

    Read more

  • WHO seeks stricter regulation for e-cigarettes

    Read more

Eurozone inflation slows down

Latest update : 2008-08-29

Inflation in the Eurozone fell to 3.8 percent in August according to official data, revealing a slowing-down after hitting a record high in July. The unemployment rate was stable at 7.3 percent.

Inflation in the 15 countries sharing the euro pulled back in August from a record high, offering an increasingly rare ray of light as the economy loses pace, official EU data showed on Friday.

Annual inflation in the euro countries fell to 3.8 percent from a record 4.0 percent in July amid cooling oil prices, according to a first estimate from the Eurostat data agency.

With oil trading at record highs close to 150 dollars a barrel, annual consumer price inflation in the eurozone had reached in July the highest level since the euro was formed in 1999.

However, since then, oil prices have gradually declined to about 117 dollars a barrel in morning trading in London on Friday, raising hopes that inflation may have passed its peak.

"We are confident that the peak in euro-area inflation took place in June-July at 4.0 percent," Lehman Brothers economist Laurent Bilke said.

The fall in inflation will bring welcome relief to consumers and businesses alike as both struggle with fast deteriorating economic conditions.

Driven by soaring oil and food prices, high inflation has pinched consumers' purchasing power and businesses' margins, putting additional strain on them just as they tried to cope with a weaker economy.

Separately, a European Commission survey found that confidence in the eurozone economy fell in August to the lowest level in over five years, although consumers' outlook improved marginally.

Following in the path of other recent weak data, the European Commission's eurozone economic sentiment indicator eased in to 88.8 points from 89.5 points in July.

Date created : 2008-08-29

COMMENT(S)