Breaking: Eurozone Preliminary Inflation soars 8.6% YoY in June vs. 8.4% expected
The annualized Eurozone Harmonised Index of Consumer Prices (HICP) surged by 8.6% in June vs. the previous reading of 8.1%, the latest data published by Eurostat showed on Friday. The market expected the bloc’s inflation to accelerate by 8.4%.
The core figures dropped to 3.7% YoY in June when compared to 3.9% expectations and 3.8% booked in May.
The Euro area figures are reported a day after Germany’s annual inflation for June eased from a record high, arriving at 8.2% while missing expectations of 8.8% following an 8.7% increase reported in May.
The bloc’s HICP figures hold significance, as it helps investors assess the European Central Bank’s (ECB) monetary policy normalization path. 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 June (41.9%, compared with 39.1% in May), followed by food, alcohol & tobacco (8.9%, compared with 7.5% in May), non-energy industrial goods (4.3%, compared with 4.2% in May) and services (3.4%, compared with 3.5% in May).
EUR/USD reaction
EUR/USD caught a fresh bit on the mixed Eurozone inflation figures. The spot is now losing 0.14% on the day, trading at 1.0466. Hotter inflation will provide further headaches for the ECB ahead of the July 21 meeting, increasing the calls of the hawks for a 50 bps hike in July.
Author
FXStreet Team
FXStreet
