The annual rate of inflation in the eurozone has been revised down for August to 5.2 percent, according to the latest figures from Eurostat.
The revision published on Tuesday means rising consumer prices are 1 percent lower than they were in July.
Inflation in the 20 eurozone countries has halved since it reached a record 10.6 percent in October 2022, when the effects of Russia’s war in Ukraine on gas and oil prices were at their height.
Nevertheless, it still remains far above the European Central Bank’s (ECB) 2 percent targets.
In an attempt to stem the surge in consumer prices, the ECB has embarked on an unprecedented quest to tighten the belt.
Last Thursday, it raised its benchmark interest rate to 4 percent, its highest level since 1999.
But the severity of the economic slowdown, exacerbated by the rise in interest rates, is sparking debate over whether or not the tightening should continue.
The European Commission last week reduced its economic growth forecasts for the eurozone by 0.3 points to 0.8 percent in 2023 and 1.3 percent in 2024.
Brussels expects consumer prices to rise by 5.6 percent in 2023 (-0.2 points, compared with the last forecasts in May) and by 2.9 percent in 2024 (+0.1 points).
The eurozone CPI is expected to rise 0.6 percent on the month, a rise of 5.3 percent on an annual basis.
This is still substantially above the European Central Bank’s 2 percent medium-term inflation target. Core inflation, which excludes volatile energy and food prices, is seen falling to 5.3 percent from 5.5 percent annually.
There was mixed trading of European stock markets Tuesday, as investors await a two-day U.S. Federal Reserve policy meeting. They are also wary of more inflation data from the eurozone.
The DAX index in Germany traded 0.1 percent lower, while the CAC 40 in France climbed 0.1 percent and the FTSE 100 in the U.K. traded 0.1 percent higher.
Euro policymakers are expected to discuss their response to the U.S. economic outlook.
The U.S. central bank is widely expected to keep interest rates steady at a range of 5.25 percent to 5.5 percent when the meeting concludes on Wednesday.
For more on the economy, click here.