European stocks fell ahead of Eurozone inflation data

European stocks fell on Monday ahead of data expected to show inflation slowing in the euro zone in July, likely supporting expectations that the European Central Bank will keep interest rates unchanged in September.

The pan-European Stoxx 600 index fell 0.1% by 0714 GMT, but looked set to record gains for the second month in a row.

The index’s decline was affected by a 4.8 percent drop in Heineken after the world’s second-largest brewer by value cut its forecast for 2023 profit growth after an economic slowdown in Vietnam cut first-half profit more than expected.

Diageo and Anheuser-Busch InBev alcoholic beverages fell more than 1 percent each.

The preliminary reading of euro zone inflation, due at 0900 GMT, is expected to show that price increases slowed to 5.3 percent in July from 5.5 percent a year earlier.

The European Central Bank raised interest rates for the ninth time in a row last week, but left the door open to halting the increases in September, even though core inflation appears to be more stable than previously thought.