Eurozone: Preliminary annual inflation shoots up to 8.6% in June, a new all-time high

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The Preliminary Consumer Price Index (CPI) for the euro zone has grown by 8.6% year-on-year, surpassing the 8.3% estimated by the market, and the previous 8.1%. This is the new historical maximum since the creation of the series published by Eurostat, the statistical office of the European Union.

Regarding the main components of inflation in the region, energy is expected to have the highest annual rate in June (41.9%compared to 39.1% in May), followed by food, alcohol and tobacco (8.9%, compared to 7.5% in May), non-energy industrial goods (4.3%, compared to 4.2% in May) and services (3.4%, compared to 3.5% in May).

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The core inflation has stood at 3.7%, down from 3.8% prior and 3.9% expected. This is the second highest record in history after the one registered in May.

EUR/USD reaction

The euro has hardly reacted to the news, as it was expected to move in case core inflation was equal to or higher than 4%, as commented Yohay Elam, senior analyst at FXStreet. At time of writing, EUR/USD is trading above 1.0463, shedding 0.19% on the day. At the European open, the pair bottomed out at 1.0432, taking some distance from yesterday’s and 15-day lows at 1.0382.

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Source: Fx Street

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