Eurozone inflation accelerated in July 2016

Eurozone inflation accelerated to 0.2% yoy in July 2016, from 0.1% yoy a month ago. So for the second consecutive month, the price growth in the currency bloc remained in positive territory. The largest contribution to the growth of consumer prices in the Eurozone is the appreciation of food, alcohol and tobacco (1.4%). Following is the CPI growth in services, which growth accelerated from 1.1% in June to 1.2% in July. The growth in prices of non-energy industrial goods remained stable at 0.4%, and energy cheapened by 6.6%.

The Eurozone core inflation, which excludes volatile prices of energy and food, was 0.9% yoy, as it was last month and in line with market expectations.

Meanwhile, the gross domestic product (GDP) wintin the Eurozone in second quarter of 2016 reported quarterly growth of 0.3% after an increase of 0.6% in Q1 2016. For the same period, the GDP growth of the European Union (EU) increased by 0.4%. This means that growth is slowing slightly an increase of 0.5% in the first quarter. As a whole, the growth rate of the economy of the EU remained almost steady over the past year, as in the last quarter of 2015 it also was 0.5% and the third is 0.4%.

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