Euro area CPI inflation confirms 1.3% rise

Euro area CPI inflation confirms 1.3% rise

Euro area inflation confirmed a 1.3 percent annual rise in June, according to the final consumer price index reading released on Monday.

Consumer prices soared 1.3 percent in the year ended June, unchanged from the flash reading, matching analysts’ projections. The CPI eased from 1.4 percent increase in May.

The core reading, excluding items like oil and foodstuff, surged 1.1 percent, unchanged from both preliminary and predicted readings. The rate edged up from 0.9 percent in May.

As of 07:53 GMT, the euro traded lower for a second straight session versus the U.S. dollar at 1.1447, compared to today’s session open at 1.1463.

Today’s data comes ahead of Thursday’s monetary policy meeting, which may witness talks about a possible shift in the central bank’s asset purchase program.

Recent comments from ECB President Mario Draghi have sparked optimism about recovery and inflation, raising expectations the ECB could start phasing out its 2.3 trillion-euro stimulus that should stay until the end of the year.

“All the signs now point to a strengthening and broadening recovery in the euro area,” Draghi said on June 27. “Deflationary forces have been replaced by reflationary ones.”

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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