Eurozone core inflation ticks higher in July

FXStreet (Mumbai) – The preliminary data released by Eurostat on Friday showed the inflation as measured by the consumer price index (CPI) stayed unchanged at 0.2%, but core inflation ticked higher to 0.9% from 0.8% in June.

While prices have risen for the past three months, inflation remains well below the ECB’s goal of just under 2%. The International Monetary Fund (IMF) earlier this week said low inflation was a risk to the Eurozone economy and added that the ECB shall have to extend its QE program beyond September 2016.

As per the ECB forecasts, inflation is expected to remain low in the short run before it picks up and rises to 1.5% in 2016. However, lower energy prices pose a major downside risk to the ECB’s inflation target.

The preliminary data released by Eurostat on Friday showed the inflation as measured by the consumer price index (CPI) stayed unchanged at 0.2%, but core inflation ticked higher to 0.9% from 0.8% in June.

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