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MNI DATA BRIEF: Eurozone July Inflation Seen At Near 2-Yr High

(MNI) London

Eurozone HICP likely hit an annual rate of 2.2% in July, according to analysts, confirming the initial estimate released late last month. That represents the quickest pace of inflation since October 2018. However, benchmark effects, particularly in the energy sector (which rose by 14.1% y/y in the flash estimate) are likely to recede in coming months, and the European Central Bank has taken a relaxed attitude toward the rise in HICP above its new target of 2.0%.

The central bank expects inflation to recede to an annual rate of just 1.4% by 2023, although Bundesbank officials have hinted at concern with German inflation, which rose to 3.1% in July from 2.1% in June. Core inflation -- excluding food and energy -- fell to an annual rate of 0.7% in the July flash estimate, down from 0.9% a month earlier. Updated HICP data are scheduled for release at 1000 BST on Wednesday.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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