Eurozone Preliminary CPI beats estimates with 0.3% YoY in June, EUR/USD uninpsired
|According to Eurostat’s flash reading of Eurozone CPI report, the annual reading came in at +0.3% in June, meeting expectations of +0.1% and +0.1% previous.
The headline inflation had hit the lowest since June 2016 last month due to the coronavirus pandemic led reduced fuel and energy demand.
Meanwhile, the core figures steadied at +0.8% in the reported month when compared to +0.8% expectations and +0.9% previous.
Key details (via Eurostat)
“Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in June (3.1%, compared with 3.4% in May), followed by services (1.2%, compared with 1.3% in May), non-energy industrial goods (0.2%, stable compared with May) and energy (-9.4%, compared with -11.9% in May).”
The Eurozone inflation report comes a day after the German Prelim CPI data was released, which showed that the German consumer price inflation accelerated by 0.8% in June and moved a tad closer to the European Central Bank’s (ECB) rate target of just under 2% for the Eurozone as a whole.
FX implications
The acceleration in the headline Eurozone inflation figure fails to impress the EUR bulls, as EUR/USD keeps its range around 1.1220, down 0.20% on the day. The souring risk sentiment boosts the greenback at the expense of the single currency.
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