Eurozone CPI was unchanged at 1.2% yoy in June, matched expectations. However, CPI core accelerated to 1.1% yoy, up from 0.8% yoy and beat expectation of 0.9% yoy.
Looking at the main components of euro area inflation, ‘food, alcohol & tobacco’, ‘energy’ and ‘services’ are expected to have an annual rate of 1.6% in June. The annual rate of ‘non-energy industrial goods’ is expected to be 0.2%
EUR/USD has little reaction to the release. For now, consolidation from 1.1412 is held well above 1.1317 minor support, keeping near term outlook bullish for another rally. Focus will stay on G20 summit in Japan, as well as US PCE inflation to be released later in the day.
