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Eurozone core inflation unchanged in August, ahead of ECB September decision

Annual core inflation in the eurozone was unchanged at 0.9% in August, compared to the prior month's reading, according to preliminary data from Eurostat.

The measure, which excludes energy, food, alcohol and tobacco, compares with a reading of 1.0% recorded in August 2018.

Annual headline inflation in the eurozone was also unchanged month over month at 1.0% in August, in line with the Econoday's consensus estimate.

The data comes at a time when markets are expecting a major stimulus package from the European Central Bank in September. However, ECB rate-setter Klaas Knot tempered such expectations as he objected to a possible immediate resumption of the central bank's asset purchase program.

Energy prices declined 0.6% in August, compared with a 0.5% increase recorded in July, while inflation in services edged up to 1.3% from 1.2%. Food, alcohol and tobacco inflation advanced to 2.1% from 1.9%.

The next release, containing more detailed data, is due Sept. 18.

Separately, Italian harmonized annual inflation advanced to 0.5% in August from 0.3% in the prior month, provisional data from the National Institute of Statistics showed. On a monthly basis, the Italian harmonized index of consumer prices came in at zero percent in August, compared with a negative 1.8% reading recorded in the previous month.

Italy's annual core inflation rate, which excludes energy and unprocessed food, advanced to 0.7% in August from 0.4% in the prior month.

Meanwhile, French harmonized annual inflation edged down to 1.2% in August from 1.3% in July, provisional data from the National Institute of Statistics and Economic Studies showed.

Month over month, the harmonized index of consumer prices rebounded to 0.5% in August compared with a fall of 0.2% in July.

Annual harmonized inflation in Germany came in at 1.0% in August, compared with July's 1.1%, according to an Aug. 29 preliminary release by the Federal Statistical Office.

In a separate release, the seasonally adjusted unemployment rate in the eurozone held steady on a monthly basis at 7.5% in July, according to Eurostat. This remains the lowest unemployment rate in the single-currency area since July 2008.