Eurozone final core CPI steadies at 0.8% y/y in May vs. 0.8% expected, EUR/USD renews 2-week lows

According to Eurostat’s final reading of Eurozone CPI report, the consumer prices came in at 1.2% on a yearly basis, confirming the flash estimate. While the core figures steadied at 0.8% versus 0.8% expected.       

On a monthly basis, the bloc’s CPI figure for April rose 0.1% versus 0.2% expectations and 0.7% previous.

The focus remains on the bloc’s inflation, as the euro 5y5y inflation swap forward, a gauge for inflation expectations, plunged to the historical low of 1.1375% in June while the European Central Bank (ECB) President Draghi, in his dovish Sintra speech, said: “In the absence of improvement, such that the sustained return of inflation to our aim is threatened, additional stimulus will be required”.

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