Eurozone inflation remained at the European Central Bank’s 2 per cent target last month, bucking expectations of a slight fall as lower energy costs and a stronger euro helped keep prices in check.
July’s figure for annual inflation marked the second consecutive month that price rises stayed at the ECB’s medium-term target. But it was above the 1.9 per cent expected by economists polled by Reuters.
The ECB has halved interest rates to 2 per cent since last summer but kept borrowing costs steady at its July meeting.
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