Eurozone inflation at three-year low as rate decision nears

Prices rose just 2.2%

President of European Central Bank Christine Lagarde and the rest of the Governing Council are due to meet on September 12 to decide on a potential interest rate cut. 

Inflation in the euro zone fell to its lowest level in three years this month, setting the stage for a further cut in the European Central Bank's interest rates in September despite an Olympics-driven surge in the price of services.

Inflation in the 20 countries sharing the euro currency fell to 2.2% this month, the slowest pace since July 2021 and closing in on the ECB's 2% target, according to a flash reading by the European Union statistics office, Eurostat.