Eurozone Preliminary HICP inflation steadies at 2% YoY in July vs. 1.9% expected

The Eurozone Harmonized Index of Consumer Prices (HICP) rose 2% over the year in July, at the same pace seen in June, the official data released by Eurostat showed Friday.

The market forecast was for a 1.9% print.

The core HICP advanced 2.3% year-over-year (YoY) in July, following a 2.3% growth in June, below the 2.2% estimates.

On a monthly basis, the bloc’s HICP inflation arrived at 0% in July, compared with June’s 0.3%.

The core HICP dropped 0.2% month-over-month (MoM) in the same period, following a 0.4% growth in June.

The European Central Bank’s (ECB) inflation target is 2.0%. The old continent’s HICP inflation data significantly impacts the market’s pricing of the ECB's future interest rate cuts.

Key details from the Eurozone inflation report (via Eurostat)

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