Originally published Tuesday, August 31, 2010 at 12:02 PM
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Summary Box: Europe inflation cools off in August
INFLATION DOWN: Inflation in the 16 countries that use the euro fell in August, as consumer prices rose by 1.6 percent in the year to August, down from July's 20-month high rate of 1.7 percent.
The Associated Press
INFLATION DOWN: Inflation in the 16 countries that use the euro fell in August, as consumer prices rose by 1.6 percent in the year to August, down from July's 20-month high rate of 1.7 percent.
BELOW TARGET RATE: Inflation remains below the European Central Bank's target of close to, but below 2 percent. Most analysts think inflation is unlikely to spike, because of easing oil prices and 10 percent unemployment keeping wage demands low.
INTEREST RATES LIKELY TO STAY LOW: With inflation seen as under control and unemployment still high, the European Central Bank is expected to keep its main interest rate unchanged at 1 percent when policymakers meet Thursday.
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