Eurozone Preliminary CPI surprises positively with 0.4% YoY in July, EUR/USD uninspired

According to Eurostat’s flash reading of Eurozone CPI report, the annual reading came in at +0.4% in July, meeting expectations of +0.2% and +0.3% previous.

In June, the headline inflation hit four-year lows amid coronavirus pandemic-induced demand destruction.

Meanwhile, the core figure rises to +1.2% in the reported month when compared to +0.8% expectations and +0.8% previous.

The Eurozone inflation report comes a day after the German Prelim CPI data was released, which showed that the German consumer price inflation showed no growth in July at 0% and moved further away from the European Central Bank’s (ECB) rate target of just under 2% for the Eurozone as a whole.

Separately, the bloc’s Preliminary Gross Domestic Product (GDP) reading came in at -12.1% QoQ for Q2, missing the expectation of -12% and -3.6% reported in Q1. The annualized figure arrived at -15.0% vs. -14.5% expected and -3.1% last.

more to come ...