• Eurozone inflation arrives at 8.9% YoY in July, meets estimates.
• Monthly HICP in the bloc drops to 0.1% in July.
• EUR/USD holds the rebound towards 1.0200 on the mixed Eurozone data.

Eurozone’s Inflation surged 8.9% in July, on an annualized basis, according to Eurostat’s final reading of the Eurozone Harmonised Index of Consumer Prices (HICP) report for the month.

The reading matched expectations of 8.9% while against the 8.9% previous. Core figures rose by 4.0%, meeting the 4.0% market estimates and 4.0% last.       

The bloc’s HICP rose by 0.1% versus 0.8% expected and 0.8% first estimate while the core HICP numbers came in at -0.2% versus -0.2% expected and -0.2% previous.

Key details (via Eurostat):

“The lowest annual rates were registered in France, Malta (both 6.8%) and Finland (8.0%). The highest annual rates were recorded in Estonia (23.2%), Latvia (21.3%) and Lithuania (20.9%).”

“Compared with June, annual inflation fell in six Member States, remained stable in three and rose in eighteen. In July, the highest contribution to the annual euro area inflation rate came from energy (+4.02 percentage points, pp), followed by food, alcohol & tobacco (+2.08 pp), services (+1.60 pp) and non-energy industrial goods (+1.16 pp).”

FX implications:

At the press time, EUR/USD is trading at 1.0166, down 0.11% on the day. The inflation data had little to no impact on the shared currency.