From Morningstar: 2024-07-31 07:45:00

Eurozone’s consumer price index rose to 2.6% in July, exceeding expectations and up from 2.5% in June. Core inflation stabilized at 2.9%, led by core goods inflation due to higher shipping costs. Services, food, energy, and industrial goods all saw varying inflation rates, according to Eurostat.

Germany and Italy experienced unexpected inflation increases, while France and Spain saw different trends. ECB likely to cut interest rates in September despite inflation uptick. July’s inflation crucial ahead of ECB’s decision. President Lagarde emphasizes inflation outlook, underlying inflation measures, and policy transmission strength as criteria shaping rate path.

Investors anticipate a quarter-point rate cut despite inflation data. ECB may continue cutting policy rates through year-end, depending on Federal Reserve meeting outcome. US monetary policy decisions also influence ECB’s trajectory. Focus remains on September 12 ECB meeting for potential rate cuts.



Read more at Morningstar: Eurozone Inflation Higher Than Expected in July