Eurozone inflation dips in July to 1.8 pct

(BRUSSELS) - Annual inflation in the 13 nations sharing the euro dipped to 1.8 percent in July, ducking under economists' expectation that it would remain at 1.9 percent for a fifth month, official EU figures showed Thursday.

The figure, confirming an earlier estimate, is in line with the European Central Bank's preference for an annual inflation rate of less than but close to 2.0 percent to maintain price stability.

It is the 11th consecutive month that the rate has held under 2.0 percent. Last July the figure stood at 2.4 percent, according to the figures from Eurostat, the EU's statistics office.

Inflation for the 27-nation EU as a whole stood at 2.0 percent in July, also slightly down from 2.1 percent in June.

The ECB is keen to keep inflation pressures firmly under control and is expected to raise its key interest rates in September, although many analysts are speculating that this will be the last rise of the year given the current turmoil in the markets.

The Eurozone's main refi rate currently stands at 4.0 percent.

The ECB has raised eurozone borrowing costs a total of eight times since December 2005, each time by a quarter of a percentage point.