Inflation data pushes euro from 2-1/2 year highs

London

THE euro slipped on Monday, moving away from 2-1/2 year highs, as investors consolidated positions after eurozone inflation data broadly met forecasts, cooling expectations of a rapid withdrawal of policy stimulus in the coming months.

A flash estimate of eurozone inflation showed that consumer price rises in July were level with the month before, standing stable at 1.30 per cent and in line with forecasts of economists polled by Reuters. The European Central Bank targets inflation of just below 2 per cent.