EZ: Inflation and unemployment rate falls slightly in July

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%)

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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