Forex News – Eurozone inflation rate unchanged at 2.7% but core rate rises

Important: This page is part of archived content and may be outdated.

Eurostat released Eurozone CPI data today for June, which remained unchanged and in line with expectations.

The final inflation reading for the Eurozone came in at 2.7% on a year on year basis. Rising fuel and electricity prices helped maintain the annual inflation rate from falling.

However, the core rate excluding food and energy rose to 1.8% beating expectations of a 1.5% increase compared to 1.7% in May.

Under “normal” times, this increase in inflation numbers would prompt the European Central Bank to continue to tighten policy as the core rate now moves toward the ECB’s 2.0% target.

However, these are not normal times and along with the change of leadership at the ECB suggests that we are going to see a mini pause with the next rate hike not likely until December, when it is expected that the rate will be increased to 2.00%.

EURUSD slowly edged up to 1.4257 within 25 minutes from a pre-news low of 1.4231.