Euro zone inflation July and second-quarter GDP economic growth data
Euro zone inflation fell in July, and new growth figures showed economic activity picking up in the second quarter of this year — bringing some positive news to the region.
Headline inflation in the euro area was 5.3% in July, according to preliminary data released Monday, lower than the 5.5% registered in June. However, it remains well above the European Central Bank's 2% target for the 20-member bloc.
The euro area has been battling high inflation for the past year, leading the ECB to undergo a full year of consecutive rate hikes in an effort to bring prices down. Last week, the central bank rose rates by a quarter percentage point once again, bringing its main interest rate to 3.75%.
Initially, much of the price pressures in the euro area were coming from high energy costs, but in recent months food prices have contributed the most. This month, food, alcohol and tobacco once again drove inflation — prices rose by 10.8% in July, although this was lower than in previous months.
Source: CNBC
