Investing.com – Preliminary consumer price inflation in the euro zone unexpectedly rose in June, somewhat easing concerns over the threat of deflation in the region, official preliminary data showed on Thursday.
In a report, Eurostat said consumer price inflation rose by a seasonally adjusted 0.1% this month, better than forecasts for a flat reading, and following a final reading of a 0.1% drop in May, which was its third consecutive decline.
Core CPI, which excludes food, energy, alcohol, and tobacco costs, increased by a seasonally adjusted 0.9% in June, beating expectations for it remain steady at May’s reading of a 0.8% gain.
The increase in prices would be seen as positive news for the European Central Bank (ECB) which has been struggling to get inflation back to its 2% target.
ECB president Mario Draghi rolled out fresh stimulus measures earlier in March, including increased asset buying and a deeper cut to deposit rates, in an effort to spur economic activity and boost sluggish inflation.
However, Draghi told European Union (EU) leaders on Tuesday that the euro zone's cumulative growth may be between 0.3% and 0.5% less over the next three years than previously estimated because of the impact of Brexit, as the U.K.’s decision to leave the EU is known.
The ECB will have its next monetary policy meeting on July 21.
After the report, EUR/USD was trading at 1.1120 compared to 1.1114 previously, while EUR/GBP was unchanged at 0.8249 earlier.
Meanwhile, European stock markets were mixed. The EURO STOXX 50 gained 0.05%, Germany's DAX lost 0.14%, France’s CAC 40 inched up 0.08%, while London’s FTSE 100 fell 0.17%.