Breaking: Eurozone Preliminary Inflation rises 9.1% YoY in August vs. 9.0% expected
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The annualized Eurozone Harmonised Index of Consumer Prices (HICP) rose by 9.1% in August vs. July’s 8.9%, the latest data published by Eurostat showed on Wednesday. The market forecast was for a 9.0% print.
The core figures jumped to 4.3% YoY in August when compared to 4.1% expectations and 4.0% recorded in July.
On a monthly basis, the old continent’s HICP accelerated to 0.5% in August vs. 1.1% expectations and 0.1% previous. The core HICP jumped 0.5% this month against 0.4% expected and -0.2% seen in July.
The Euro area figures are reported a day after Germany’s annual inflation for August, which rose to 8.8% and matched estimates following an 8.5% rise reported in July.
The bloc’s HICP figures hold significance, as it helps investors assess the European Central Bank’s (ECB) monetary policy normalization course. The ECB inflation target is 2%.
Key details (via Eurostat)
“Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in August (38.3%, compared with 39.6% in July), followed by food, alcohol & tobacco (10.6%, compared with 9.8% in July), non-energy industrial goods (5.0%, compared with 4.5% in July) and services (3.8%, compared with 3.7% in July).”
EUR/USD reaction
The shared currency is little changed on the mixed Eurozone inflation data, as EUR/USD is holding the lower ground near 0.9980, down 0.30% on the day.
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