The annual rate of inflation in the eurozone may have risen to a five month high in August, according to EU statistics office Eurostat. In its flash estimate for the month, the statistics office said eurozone annual inflation is expected to be 2.1pc. That is above the 2.0pc analysts had expected and would mark the highest level of inflation since March. The rise in inflation may reflect the recent decline of the euro against the dollar, which has made imports more expensive, and an uptick in oil prices after an explosion destroyed part of an Iraqi pipeline.
In July, consumer prices declined by 0.2pc to an annual rate of 1.9pc as retailers slashed the price of clothes during the summer sales. Prices for clothes dropped by 5.5pc last month, Eurostat figures show. The final reading for August will be released on 17 September. //www.fxcentre.com