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

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).