Eurozone inflation plunges to three-year low of 2.2% in August

(Sharecast News) - Inflation in the eurozone inflation fell sharply to a three-year low in August, boosting hopes that the European Central Bank will cut interest rates at its next monthly meeting. Inflation plunged to 2.2%, in line with forecasts and down from July's 2.6%. The news came as Germany and Spain both reported bigger than expected reductions on Thursday.

Economists expect a quarter-point cut in the ECB's benchmark interest rate to 3.5% when policy makers meet on September 12. The ECB cut rates by the same margin in June as inflation moves towards the central bank's 2% target.

Reporting by Frank Prenesti for Sharecast.com