(Il Sole 24 Ore Radiocor) - London, 30 Aug - Shares in London closed flat to lower as markets reacted to the newest inflation figures from the US.

The US personal consumption expenditures price index showed headline prices in July rose 0.2% from the previous month and 2.5% from a year earlier while the core index, stripping out food and energy prices, was up 0.2% and 2.6%. The reading were broadly in line with expectations.

While data in Europe showed that price pressures continued to ease. Eurozone inflation dropped to a three-year low of 2.2% in August, according to statistics agency Eurostat, in line with forecasts.

The core rate - excluding energy, food, alcohol and tobacco - fell to 2.8% in August from 2.9% in July, also in line with forecasts.

The reading boosted expectations for a September rate cut from the European Central Bank.

On the data front, house prices in the UK fell seasonally adjusted 0.2% in August compared to July, when they rose by 0.3%, according the building society Nationwide.

The London FTSE 100 closed down 0.04% at 8,376.63 points.

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(RADIOCOR) 30-08-24 18:23:22 (0522) 5 NNNN