(BRUSSELS) - Inflation in the 15 countries sharing the euro came off record highs in August, providing a rare upbeat note as the threat of recession looms, official EU data showed on Tuesday.

Annual inflation in the eurozone countries fell to 3.8 percent from a record 4.0 percent in July amid cooling oil prices, according to figures from the Eurostat data agency, which confirmed an initial estimate from late last month.

The rate was slightly lower than economist forecasts for a fall to 3.9 percent, as polled by Dow Jones Newswires.

With oil trading at record highs close to 150 dollars a barrel, annual consumer price inflation in the eurozone in July hit its highest level since the euro was launched in 1999.

However since then, oil prices have gradually declined, falling to under 116 dollars a barrel by the end of the month.

For the 27 nation EU as a whole, inflation stood at 4.2 percent in August, down from 4.4 percent in July.

The fall in inflation is some relief to consumers and businesses as economic conditions deteriorate.

However a year earlier, in August 2007, the eurozone inflation rate stood at 1.7 percent with the EU rate at 1.9 percent.

Driven by soaring oil and food prices, high inflation has pinched consumer spending and business margins, putting additional strain on them just as they have to cope with a weaker economy.

Further details - Eurostat

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