Investing.com – Consumer price inflation (CPI) in the euro zone rose less than expected in August, underlining concerns over weak price increases in the region and placing pressure on the European Central Bank (ECB) to embark on further stimulus, official preliminary data showed on Thursday.
In a report, Eurostat said consumer price inflation rose by a seasonally adjusted 0.2% this month, compared to forecasts for an increase of 0.3%, and following a final reading of a 0.2% advance in June.
Core CPI, which excludes food, energy, alcohol, and tobacco costs, increased by a seasonally adjusted 0.8% in August, missing expectations for it remain steady at July’s reading of a 0.9% gain.
The weaker than expected reading would be seen as negative news for the euro zone’s monetary authority as inflation remains far below its 2% target.
Speculation has been on the rise that the ECB will need to take more easing measures at its next monetary policy meeting on September 8.
After the report, EUR/USD was trading at 1.1146 compared to 1.1148 previously, while EUR/GBP was at 0.8478 compared to 0.8475 earlier.
Meanwhile, European stock markets were mixed. The Euro Stoxx 50 gained 0.22%, Germany's DAX lost 0.24%, France’s CAC 40 traded up 0.38%, while London’s FTSE 100 fell 0.10%.