Inflation Cools in France and Italy, Steady in Spain

Alsharq Tribune - World News

Inflation slowed in France and Italy and held steady in Spain in August, official data showed on Friday, as the European Central Bank weighs its next move on interest rates next month.

French annual inflation reached 0.9 percent this month, down from 1.0 percent in July, as transport and energy prices eased, the INSEE statistics agency said.

Under the "harmonized" metric favored by the ECB, consumer prices rose by 0.8 percent compared to 0.9 percent in July, AFP reported.

Italy's inflation rate slowed to 1.6 percent in August from 1.7 percent in July as the rise in energy prices eased.

The harmonized rate, however, was the same at 1.7 percent.

In Spain, the harmonized inflation rate remained stable at 2.7 percent as fuel prices fell less than last year while food and electricity costs eased.

The ECB kept its interest rates steady in July as policymakers waited to see the impact of US President Donald Trump's tariffs on the eurozone.

Days after the ECB meeting, the European Union and the United States reached a trade deal that sets US tariffs on EU goods at 15 percent, down from Trump's threat of 30 percent.

The ECB rate pause brought to an end a streak of consecutive cuts stretching back to September 2024 that has seen the central bank slash its benchmark deposit rate to two percent.