Eurozone inflation on target as July sees fall to 1.8%

ANNUAL inflation in the 13-nation euro zone eased to 1.8% in July to stay well within the European Central Bank’s target area, although most economists still expect it to raise interest rates next month.

The European Union’s statistical office Eurostat said the 1.8% annual inflation reading for July was unchanged from its first estimate. It was also in line with forecasts by economists. Annual inflation was 1.9% in June.

Eurostat said prices dropped 0.2% month on month in July, also in line with market expectations.