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Eurozone inflation increased to 2 per cent in June to the European Central Bank’s medium -term target.
On Tuesday, the annual inflation of June published on Tuesday was in line with the expectations of economists from the 1.9 percent figure of May and a Reuters Poll.
Diego ISRO, head of European economics in S&P Global Market Intelligence, said the growth was “modest” and “especially not worrying”.
He said that, while ECB At its next meeting in July, there was a possibility of keeping the interest rates stable, “We see opening the door for one last. [quarter-point] Cut in September ”. The central bank has brought rates to 2 percent from last summer.
ECB President Christine Lagard said last month said that the central bank was “reaching the end of a monetary policy cycle”.
Core inflation remained stable at 2.3 percent in June, except for inflation, unstable food and energy prices.
Finely seen for inflation of services – a gauge for domestic value pressure that is above the target of 2 percent for more than three years – increased by 3.3 percent to 3.3 percent to 3.2 percent in May.
The euro was largely unchanged after the data was released on $ 1.181 on Tuesday.
Since the beginning of the year, Mudra has appreciated 14 percent against the US dollar, making many imports cheaper to Eurozone and has had a bottom of wide price pressures.
Oil prices temporarily rose by 26 percent after Israel started bombing Iran in June, reaching the highest level since the beginning of the year. However, after entering the US struggle, most of them reversed and broke up a ceasefire.
The market expectations for cuts in interest rate were unchanged after the June inflation data was published. The traders gave about 10 percent chance to cut a quarter-point rate in the next ECB meeting in July, according to the levels contained by the Swap markets.
