Inflation falls to 2.2% in Europe, clearing the way for ECB rate cut

The European Central Bank next to containers in Frankfurt, Germany (Michael Probst/AP)

Inflation in the 20 European Union countries that use the euro fell sharply to 2.2% in August, opening the door for the European Central Bank to cut interest rates as the ECB and the US Federal Reserve prepare to lower borrowing costs to support growth and jobs.

The August figure was down from 2.6% in July, according to figures on Friday from European Union statistics agency Eurostat.