According to Eurostat, the Eurozone’s rate of inflation reached 0.1% in June 2016. The rate measures the average inflation of consumer prices in 19 Eurozone countries. Consumer prices started growing faster in June as compared to May’s figures.
The Core CPI (excluding energy, food and alcohol prices) accelerated over the reporting period relative to the previous one. To be more specific the Core CPI indicated 0,9% in June versus 0,8% in May.
As for energy prices, they dropped by 6,5% in June 2016 relative to June 2015. The pace of decline slowed down last month since May’s decline reached 8.1%. As for foodstuffs, tobacco, and alcohol, the prices increased by 0,9% over the reporting period. The service sector also saw a price increase by 1.1% in June.
That said, the current rate of inflation is still far away from the 2% target set by the ECB. The situation has remained unchanged over the last 3 years despite the ECB’s efforts to stimulate inflation through QE and record-low interest rates.
Forex
In the meantime, the common European currency keeps on recovering from the same long-term downtrend against the U.S. Dollar, Masterforex-V Academy reports. To be more specific, EURUSD is still forming a bullish move – wave в(С) inside the recovery.
For now, the closest levels of resistance are the top of the descending MF sloping channel and MF pivot 1,1423. If the downtrend resumes, the next major level of support is 1,0825.
