- Eurozone inflation arrives at 2.2% YoY in July.
- Monthly CPI in the bloc drops by 0.1% in July.
- EUR/USD remains unfazed around 1.1720 on the EZ data.
According to Eurostat’s final reading of the Eurozone CPI report for July, the consumer prices came in at 2.2% on a yearly basis, meeting the flash estimate of 2.2% and 2.2% expectations. While the core figures rose by 0.7%, beating the 0.7% consensus forecasts.
On a monthly basis, the bloc’s CPI figure for July arrived at -0.1% versus -0.1% expectations and 0.3% previous while the core CPI numbers came in at -0.4% versus -0.4% expected and -0.4% last.
Key details (via Eurostat):
“The lowest annual rates were registered in Malta (0.3%), Greece (0.7%) and Italy (1.0%). The highest annual rates were recorded in Estonia (4.9%), Poland and Hungary (both 4.7%). Compared with June, annual inflation fell in nine Member States, remained stable in two and rose in sixteen.”
“In July, the highest contribution to the annual euro area inflation rate came from energy (+1.34 percentage points, pp), followed by food, alcohol & tobacco (+0.35 pp), services (+0.31 pp) and non-energy industrial goods (+0.17 pp).”
FX implications:
EUR/USD is holding up its recovery around 1.1720, having found some support just above 1.1700, fresh 2021 lows. The pair adds 0.10% on the day.