Consumer prices provisionally moved in line with expectations in August. A 0.1 percent monthly rise in the headline CPI made for a 1.8 percent annual inflation rate, up just a tick from its final July mark but still its highest reading since April.
The flash HICP was rather stronger, registering a 0.2 percent monthly gain which was enough to boost its yearly rate by a full 0.3 percentage points to also 1.8 percent, similarly a 4-month peak.
The limited volatility in the annual CPI rate reflected an acceleration in goods inflation (2.0 percent after 1.7 percent) that was almost offset by a dip in services (1.7 percent after 1.8 percent). However, with both food (3.0 percent after 2.7 percent) and energy (2.3 percent after 0.9 percent) providing a tidy lift, the likelihood is that the underlying rate was little changed from July.
Today's German update increases the chances of a somewhat stronger headline Eurozone inflation rate in tomorrow's flash HICP report. However, much more important will be the core rates which ought to be broadly stable. Any significant move here could have important implications for the outcome of next week's ECB meeting.