Investing.com - Headline inflation in the euro zone rose in line with forecasts in July, but underlying inflation rose to the highest in four years, according to preliminary data released on Monday.
The annual rate of inflation rose by 1.3% in July, according to a preliminary reading from Eurostat, in line with market expectations, matching June’s final reading.
Core inflation, which strips out volatile components and is seen as a more reliable gauge of inflationary pressures, rose to 1.2% in July from 1.1% in June. Economists had expected a reading of 1.1%. It was the highest reading since August 2013.
The uptick in underlying inflation gives the European Central Bank more leeway to begin scaling back its stimulus program in the autumn.
In a separate release, Eurostat said the unemployment rate in the euro area ticked down to 9.1% in June from 9.2% in May, its lowest level since February 2009 and better than market expectations of a 9.2% rate.
The unemployment rate for May was revised down to 9.2% from the previously reported 9.3%.