The final figure of euro zone CPI inflation for August confirmed the first estimate of 2.5% Y/Y. On a monthly basis, CPI inflation rose by 0.2% M/M in August, while the annual rate stayed unchanged at 2.5% Y/Y. The details show that prices of clothing (1.8% M/M), health (0.5% M/M), recreation & culture (0.3% M/M), household equipment (0.3% M/M) and alcohol & tobacco (0.3% M/M) rose significantly in August, while food (-0.2% M/M), education (-0.2% M/M) and energy (-0.2% M/M) were cheaper in the same month. Core CPI, which excludes food and energy, rose by 0.3% M/M, while the annual rate stayed unchanged at 1.2% Y/Y after falling sharply in July. National data were mixed as inflation slowed sharply in Greece (1.4% Y/Y from 2.1% Y/Y), Portugal (2.8% Y/Y from 3.0% Y/Y) and Spain (2.7% Y/Y from 3.0% Y/Y), while CPI rose significantly in Italy (2.3% Y/Y from 2.1% Y/Y) and France (2.4% Y/Y from 2.1% Y/Y). Euro zone inflation peaked in April and has slowed somewhat in the previous months. During the remainder of the year, inflation is forecast to ease further and will probably hit the 2% target late this year or early 2012.