Eurozone inflation in July fell a tenth to 0.4% YoY. The core inflation remained stable at 0.8% YoY. Food inflation including tobacco and alcohol fell -0.3% YoY, while energy prices fell up to -1.0% YoY.
According to JPMorgan’s analyst Hugo Anaya, “making the seasonal adjustments the core figure would be a rate of 0.1% MoM in July, repeating the rise of June. We are comfortable with our estimates for the rest of the year core inflation to 0.8% YoY. For the general inflation in the Eurozone we expect minimums in August up to 0.3% YoY, and then it rises to 0.4% YoY in September. After we hope it increases to an average level of 0.7% YoY in 4Q14, by comparing food and energy prices, while the core inflation remains unchanged.”
On the other hand, the unemployment rate in June fell in the eurozone by 0.1% to 11.5%. Since the peak of September 2013 the unemployment rate has fallen by 0.5%. In particular, the unemployment decreased in Ireland (11.8% vs. 11.9%) Spain (24.5% vs. 24.7%), Netherlands (6.8% vs. 7%) and Portugal (14.1% vs. 14.3%), while it went up in Denmark (6.4% to 6.5%) and France (10.1% to 10.2%)