Eurozone Flash CPI eases to 1.1% y/y in July, meets estimates (EUR little changed)

According to Eurostat’s flash reading of Eurozone CPI report, the annual reading came in at 1.1% in July, meeting expectations of 1.1% and 1.3% previous.

Meanwhile, the core figures also dropped to 0.9% in the reported month when compared to 1.0% expectations and 1.1% 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 July (2.0%, compared with 1.6% in June), followed by services (1.2%, compared with 1.6% in June), energy (0.6%, compared with 1.7% in June) and non-energy industrial goods (0.4%, compared with 0.3% in June).”

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 1.1% y/y 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 June unemployment rate arrived at 7.5% vs. 7.5% last.