Euro zone inflation did not continue to slow down

Ai Hui Cha, August 31: Inflation in the eurozone stopped slowing in August, which is a warning signal for European Central Bank officials as they need to weigh whether inflationary pressures are too stubborn to risk suspending interest rate hikes. Affected by energy factors, the euro area recorded an annual CPI rate of 5.3% in August, which is unchanged from the previous month. Although ECB Executive Director Schnabel expressed concerns about the economic slowdown earlier, inflation is also a factor of concern, exacerbating the dilemma faced by ECB policymakers this month. For ECB officials, the last important thing is the ECB's economic expectations. The European Central Bank's economic forecast for June shows that inflation will still exceed the 2% target (expected to be 2.2%) by 2025, with potential price pressures greater than those on food and energy.