The latest inflation figures for Europe paint a picture of mixed fortunes across the continent. Euro zone annual inflation was 0.2 percent in August, the same as in July, according to Eurostat, the statistical office of the European Union. For the European Union overall, annual inflation in August was 0.3 percent, up from 0.2 percent in July. However, these numbers mask an underlying divergence between the haves and have-nots across European markets. Negative annual inflation rates were observed in 12 member states in August, with the lowest annual rates seen in Croatia (–1.5 percent), Bulgaria (–1.1 percent) and Slovakia (–0.8 percent). Conversely, Belgium enjoyed the highest annual rate, with 2.0 percent, Sweden had 1.2 percent and Estonia 1.1 percent. Compared with July, annual inflation fell across seven member states, remained stable in six and climbed in 15.

The outlook for the euro zone has weakened in the immediate aftermath of the United Kingdom’s vote to lea