Europe’s inflation held steady in August as European Central Bank keeps an open mind on rates

By DAVID McHUGH
AP Business Writer

FRANKFURT, Germany (AP) — New numbers show annual inflation held steady in Europe in August. Food prices raced ahead of falling fuel costs, but there was no clarity about whether the European Central Bank can pause its record series of interest rate hikes. The consumer price index for the 20 countries that use the euro currency was unchanged at 5.3% from the July reading, Food, alcohol and tobacco prices increased a painful 9.8%. That’s according to official figures from EU statistics agency Eurostat. Another key inflation number, so-called core inflation, also eased in August. It fell to 5.3% from 5.5%.