Euro zone prices inch up in August

Euro zone producer prices inched up in August as expected to point to easing inflationary pressure.

Euro zone producer prices inched up in August as expected to point to easing inflationary pressure.

The European Union statistics office said prices at factory gates in the 13 countries using the euro rose 0.1 per cent month-on-month for a 1.7 per cent year-on-year gain - in line with economists' expectations.

The Eurostat data reinforced expectations that the European Central Bank will leave interest rates unchanged this week, and possibly until the end of 2007.

Eurostat said euro zone unemployment remained unchanged in August at a historic low of 6.9 per cent, also as expected, offering a glimmer of hope that domestic demand would improve.