Headline inflation remained unchanged at 5.3% y/y amid expectations of lower inflation. Core inflation slowed less than expected and core services price inflation is proving more stubborn that the ECB would like. Euro-area flash inflation dropped to to 5.3% y/y in August, unchanged from July and somewhat higher than expected. Core inflation dropped to 5.3% y/y in August, down from 5.5% y/y in July. Core service price inflation dropped marginally to 5.4% y/y and proves too stubborn for the ECB's liking. This is probably the component in the flash release that is most closely connected with the labour markets and thus ... (full story)