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MNI: EUROZONE DATA: Flash HICP (Jul 2019) Preview....>

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MNI: EUROZONE DATA: Flash HICP (Jul 2019) Preview - 10:00 BST
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- HICP (y/y): Bbg Consensus: 1.1%; MNI Median: 1.1%; Previous (Jun): 1.3%
- Core HICP (y/y): Bbg Consensus: 1.0%; MNI Median: 1.0%; Previous (Jun): 1.1%
- Inflation is expected to weaken to its softest pace in Jul since Feb-18
- The decline in the headline rate is anticipated to be driven by softer core
inflation (forecast to drop by 0.1pp to sit at just 1.0%)...
- ... and a likely further moderation in energy price growth
- Available state data supports the market's call - headline HICP growth rose in
Spain (by 0.1pp to 0.7%) but fell significantly in Germany (by 0.4pp to 1.1%)
- Since March, inflation readings have been distorted by calendar effects linked
to the later timing of Spring public holidays this year
- July's data should be largely free of any such distortions 
- Core inflation looks likely to maintain a sideways trend in the coming months 
- Indeed, despite higher wage costs, the subdued demand environment means that
firms are choosing to sacrifice profit margins rather than increase prices

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