EUR/USD little changed as Eurozone Prelim CPI steadies at 1.0% y/y in August

Dhwani Mehta FXStreet

According to Eurostat’s flash reading of Eurozone CPI report, the annual reading came in at 1.0% in August, meeting expectations of 1.0% and 1.0% previous.

Meanwhile, the core figures also remained unchanged at 0.9% in the reported month when compared to 1.0% 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 August (2.1%, compared with 1.9% in July), followed by services (1.3%, compared with 1.2% in July), non-energy industrial goods (0.4%, stable compared with July) and energy (-0.6%, compared with 0.5% in July).”

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 only 1.4% and remained well below the European Central Bank’s (ECB) rate target of just under 2 percent for the Eurozone as a whole.

Separately, Eurozone July unemployment rate was reported at 7.5% vs. 7.5% last.

About Eurozone Prelim CPIs estimate

The Euro Zone CPI released by the Eurostat captures the changes in the price of goods and services. The CPI is a significant way to measure changes in purchasing trends and inflation in the Euro Zone. Generally, a high reading anticipates a hawkish attitude which will be positive (or bullish) for the EUR, while a low reading is seen as negative (or bearish).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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