Unemployment rates in major Eurozone countries

■ The eurozone unemployment rate fell to 6.2% in July, the lowest level on record, with a significant reduction in unemployment in Italy contributing significantly.  

■ Eurozone inflation rose to 2.1% in August, with core inflation remaining stable, primarily driven by energy base effects. 
 
The eurozone unemployment rate fell to 6.2% in July, down 0.1 percentage point from the previous month, marking its second consecutive month of decline and matching its lowest level since November of last year. Furthermore, the youth unemployment rate fell to 13.9%, down 0.4 percentage points, reaching a new low on record and falling into the 13% range for the first time. Italy, the fourth-highest unemployment rate country in the eurozone, saw a significant reduction in unemployment, contributing substantially to this decline. However, unemployment in core economies like Germany and France has not shown a trend of decline, meaning that overall labor supply and demand in the eurozone have yet to tighten. 
 
The eurozone Harmonized Index of Consumer Prices (HICP) rose at an accelerated rate in August (flash value, up 2.1% year-on-year). The core HICP, which reflects the underlying price tone and excludes food, energy, alcohol, and tobacco, rose by 2.3% year-on-year, virtually unchanged from the previous month. The overall increase was driven primarily by a slowdown in energy price declines, primarily due to base effects. These base effects are expected to strengthen until October and then gradually weaken. The slowdown in food and alcohol inflation has ended, while the slowdown in services continues, resulting in underlying inflation remaining stable.