Berlin  - Retail sales in the 16-member eurozone fell a less-than-forecast 0.2 per cent in August, the Europe's statistics office said Monday.

However, the data helped to underscore the fragile state of the eurozone economy with August retail sales in the currency bloc having tumbled by 2.6 per cent compared to the same month in 2008.

In addition, the data is likely to reinforce market expectations that the European Central Bank, which is to hold its monthly rate-setting meeting on Thursday, will be in no rush to change interest rates in the eurozone.

Analysts had forecast that Monday's data released by Eurostat would say that retail sales dropped by 0.4 per cent after sliding by 0.2 per cent in July.

Releasing the data, Eurostat said retail sales in the broader 27-member European Union fell by 0.3 per cent month on month in August and by 1.8 per cent on the year.

While Poland and Spain reported the biggest monthly rises (1.5 per cent 1.4 per cent respectively) , Latvia and Sweden posted the biggest falls (3.3 per cent and 2.7 per cent). (dpa)