Inflation in the 17-nation eurozone will ease gradually to 2.5 per cent this year, the European Commission forecast today 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 per cent and 2.5 per cent for the year as a whole, and remaining above two per cent until the end of 2011," the report said.

The ECB considers two 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 per cent, the same level as July.

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