According to the report from Eurostat, in July 2020, a month in which COVID-19 containment measures continued to be lifted, Euro area annual inflation is expected to be 0.4%, up from 0.3% in June. Economists had expected a 0.2% increase. Meanwhile, the core figure rises to +1.2% in the reported month when compared to +0.8% expectations and +0.8% previous.

Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in July (2.0%, compared with 3.2% in June), followed by non-energy industrial goods (1.7%, compared with 0.2% in June), services (0.9%, compared with 1.2% in June) and energy (-8.3%, compared with -9.3% in June).