Eurozone Inflation Rises to 2.1 Percent, Firming Bets ECB Will Hold Rates Steady

Markets see no near-term interest rate policy change, though some analysts say disinflationary forces may open the door to a rate cut by year-end.

A view of the European Central Bank (ECB) headquarters in Frankfurt, Germany, on March 6, 2025. Jana Rodenbusch/File Photo/Reuters

Euro zone inflation edged up slightly in August, staying close to the European Central Bank’s (ECB) target and bolstering expectations that policymakers will keep interest rates unchanged at next week’s meeting.

Consumer prices across the 20-nation currency bloc rose by 2.1 percent in annual terms last month, up from 2.0 percent in July, according to Eurostat data released Sept. 2. On a monthly basis, prices rose 0.2 percent after being flat in July.