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Euro zone final CPI holds at 0.4% in July

Published 08/14/2014, 05:07 AM
Euro zone inflation holds at 0.4% in July
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Investing.com - Consumer price inflation in the euro zone was unchanged from a preliminary estimate in July, holding at the lowest level since October 2009, official data showed on Thursday.

In a report, Eurostat said consumer price inflation rose by a seasonally adjusted 0.4% last month, in line with expectations and unchanged from a preliminary estimate. Euro zone inflation rose by 0.5% in June.

The rate remains firmly below the European Central Bank's target of near but just below 2%.

Month-over-month, consumer prices declined 0.7% last month, compared to forecasts for a 0.6% drop and following a 0.1% gain in June.

Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by a seasonally adjusted 0.8% in July, meeting forecasts and unchanged from an initial estimate.

Following the release of the data, the euro turned higher against the U.S. dollar, with EUR/USD rising 0.04% to trade at 1.3369, compared to 1.3359 ahead of the data.

Meanwhile, European stock markets remained mixed. The DJ Euro Stoxx 50 declined 0.7%, France’s CAC 40 dipped 0.45%, London’s FTSE 100 inched up 0.15%, while Germany's DAX slumped 0.4%.

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