Inflation in the eurozone slowed to a three-year low in August, according to an official flash estimate on Friday.

According to Eurostat, consumer prices in the single currency bloc rose 2.2% annually in August, in line with FXStreet-cited consensus. This was slower than the 2.6% rise in July, and the lowest rate since July 2021.

Services inflation picked up to 4.2% in August from 4.0% in July.

Month-on-month, prices rose 0.2% in August from July, having been unchanged in July from June.

Core consumer prices - stripping out energy, food, alcohol & tobacco - rose 2.2% annually in August, cooling from 2.6% in July. This was also in line with market expectations.

Monthly core prices rose 0.2% in August, after falling 0.2% in July.

Both the core and headline rates remain above the European Central Bank’s 2% target.

Meanwhile, separate figures from Eurostat showed that the unemployment rate in July fell to 6.4% in the eurozone. Market consensus had expected no change from 6.5% in June.

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