Eurozone inflation to ease to 2.5% in 2011

(BRUSSELS) - Inflation in the 17-nation eurozone will ease gradually to 2.5 percent in 2011, the European Commission forecast on Thursday as consumer prices remain higher than the European Central Bank's threshold.

Inflation "seems to have peaked in the second quarter of 2011" when it was partly fuelled by high energy prices, the European Commission said in an interim forecast.

"With weaker economic growth going forward, ... inflation in the EU and the euro area is also now expected to moderate slightly more quickly, reaching respectively 2.9 percent and 2.5 percent for the year as a whole, and remaining above 2.0 percent until the end of 2011," the report said.

The ECB considers 2.0 percent the best level for price stability in the single currency area.

Separately, the Eurostat data agency said eurozone inflation remained stable in August at 2.5 percent, the same level as July.

August 2011 Euro area annual inflation stable at 2.5% EU stable at 2.9% [Eurostat]