Eurozone July inflation confirmed at 0.2%

Annual inflation in the eurozone was confirmed at 0.2% for July, according to data released by Eurostat.

This was up from 0.1% in June and unchanged from July of last year, but still below the European Central Bank’s target of just under 2%.

On the month, however, prices were down 0.6%, which was steeper than the 0.5% drop forecast and the previous month’s 0.2% increase.

Core inflation, which excludes unprocessed food and energy, was unchanged at 0.8% last month, in line with estimates. Excluding energy, food, alcohol and tobacco products, inflation was unchanged at 0.9%, also in line.

Energy prices declined by 6.7% following a 6.4% annual drop in June. On the month, they were down 1%.

Unprocessed food prices rose 2.9% on the year in July, up sharply from 1.5% in June, while services prices were up 1.2% on the year.