Eurozone final core CPI steadies at 0.8% y/y in May vs. 0.8% expected, EUR/USD renews 2-week lows
|According to Eurostat’s final reading of Eurozone CPI report, the consumer prices came in at 1.2% on a yearly basis, confirming the flash estimate. While the core figures steadied at 0.8% versus 0.8% expected.
On a monthly basis, the bloc’s CPI figure for April rose 0.1% versus 0.2% expectations and 0.7% previous. while the core CPI numbers arrived at % versus 0.0% expected and 0.0% last (revised down from 0.9%).
Key Details (via Eurostat):
“The lowest annual rates were registered in Cyprus (0.2%), Portugal (0.3%) and Greece (0.6%). The highest annual rates were recorded in Romania (4.4%), Hungary (4.0%) and Latvia (3.5%). Compared with April 2019, annual inflation fell in sixteen Member States, remained stable in five and rose in six.
In May 2019, the highest contribution to the annual euro area inflation rate came from services (+0.47 percentage points, pp), followed by energy (+0.38 pp), food, alcohol & tobacco (+0.29 pp) and non-energy industrial goods (+0.08 pp). “
The focus remains on the bloc’s inflation, as the euro 5y5y inflation swap forward, a gauge for inflation expectations, plunged to the historical low of 1.1375% in June while the European Central Bank (ECB) President Draghi, in his dovish Sintra speech, said: “In the absence of improvement, such that the sustained return of inflation to our aim is threatened, additional stimulus will be required”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.