Euro zone inflation edged higher to 2.1% in August, according to the latest flash data from statistics agency Eurostat on Tuesday.

Economists polled by Reuters had expected the rate to remain unchanged from July, at 2%.

Core inflation, which strips out more volatile food, energy, alcohol and tobacco prices, was unchanged from 2.3% in July. The closely watched services print meanwhile was slightly lower in August, at 3.1% compared to 3.2% in July.

At 2.1%, the euro zone's latest inflation rate is just slightly higher than the European Central Bank's target of 2%.

The euro was down 0.6% against the dollar, at $1.1640. The pan-European Stoxx 600 was trading 0.7% lower Tuesday morning.

The central bank held its key interest rate at 2% in July and is expected to maintain that s

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