Euro area CPI inflation ebbs in July, but core prices stuck

The cost of living in the single currency bloc ebbed in July, but so-called core inflation proved a tad sticky.

According to Eurostat, in seasonally adjusted terms, the annual rate of increase in the bloc's headline Consumer Price Index slipped from 5.5% for June to 5.3% in July, as was correctly anticipated by economists.

CPI in fact dipped at a month-on-month pace of 0.1%.

Core CPI also dipped by 0.1% on the month.

Nonetheless, in year-on-year terms, core CPI, which the ECB defines as consumer prices excluding those for energy, food, alcohol and tobacco, was up by 5.5%, the same as during the previous month.

Annual headline CPI fell back in France, Germany, Italy, Portugal and the Netherlands.

But in Spain it rebounded from 1.6% in June to 2.1% for July.

-- More to follow --