The decline from 2.6% in July was in-line with the forecast of economists polled by Reuters.

The core rate — excluding the more volatile components of energy, food, alcohol and tobacco — fell to 2.8% in August from 2.9% in July, also matching a Reuters poll.

It come after price rises in Germany, the euro area’s biggest economy, cooled more than expected to 2% for the month, on a euro zone harmonized basis.

Economists at ING expect euro zone core inflation to remain stubbornly above 2.5% for the rest of the year amid stickiness in goods and services.

As of Thursday, markets expect the European Central Bank to cut interest rates by another 25 basis points in for September, after the institution made its first trim in June.

This is a breaking news story and will be updated shortly.