Eurozone's underlying inflation, a crucial indicator of price increases monitored by the European Central Bank, showed a stronger acceleration than initially reported in June. This development further cements the widely anticipated interest-rate increase expected to take place next week.
According to Eurostat's report on Wednesday, core consumer prices, which exclude volatile elements like food and energy, rose by 5.5% compared to the previous year. This figure is slightly higher than the preliminary estimate of 5.4% and the reading of 5.3% recorded in May.
The main gauge of inflation, which stands at 5.5%, has been confirmed. This rate is the lowest since before Russia's invasion of Ukraine. Economists surveyed by Bloomberg predict that underlying price growth will continue to exceed the overall inflation rate until the end of 2024.
While headline inflation has significantly decreased from its peak of 10.6% in October, policymakers are now focusing on the narrower measure, which is proving more resistant to decline. The upward revision on Wednesday could provide support for ECB members who advocate for further rate hikes into the fall. However, some officials have recently adopted a more cautious stance.
According to Eurostat's report on Wednesday, core consumer prices, which exclude volatile elements like food and energy, rose by 5.5% compared to the previous year. This figure is slightly higher than the preliminary estimate of 5.4% and the reading of 5.3% recorded in May.
The main gauge of inflation, which stands at 5.5%, has been confirmed. This rate is the lowest since before Russia's invasion of Ukraine. Economists surveyed by Bloomberg predict that underlying price growth will continue to exceed the overall inflation rate until the end of 2024.
While headline inflation has significantly decreased from its peak of 10.6% in October, policymakers are now focusing on the narrower measure, which is proving more resistant to decline. The upward revision on Wednesday could provide support for ECB members who advocate for further rate hikes into the fall. However, some officials have recently adopted a more cautious stance.
