{"id":117314,"date":"2025-08-01T16:10:00","date_gmt":"2025-08-01T12:10:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=117314"},"modified":"2025-08-01T14:18:02","modified_gmt":"2025-08-01T10:18:02","slug":"eurozone-consumer-inflation-holds-steady-in-july","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/eurozone-consumer-inflation-holds-steady-in-july\/08\/01\/market-updates\/","title":{"rendered":"Eurozone Consumer Inflation Holds Steady in July"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Annual CPI<\/strong>: 2.0% (unchanged from June)<\/li>\n\n\n\n<li><strong>Core CPI<\/strong> (excluding food and fuel): 2.3%<\/li>\n\n\n\n<li><strong>Month-on-Month CPI<\/strong>: 0.0% (flat after a 0.3% gain in June)<\/li>\n<\/ul>\n\n\n\n<p><strong>Key Highlights:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Inflation Dynamics<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Inflation remains within the European Central Bank\u2019s (ECB) target, easing pressure on policymakers for further rate cuts after the end of the easing cycle last month.<\/li>\n\n\n\n<li>Inflation in <strong>Germany<\/strong> eased to <strong>1.8%<\/strong> (from 2.0%), <strong>Italy<\/strong> dropped to <strong>1.7%<\/strong> (from 1.8%), and <strong>France<\/strong> stayed at <strong>0.9%<\/strong>. However, <strong>Spanish inflation<\/strong> rose to <strong>2.7%<\/strong> (from 2.3%).<\/li>\n\n\n\n<li>The rapid price growth from post-pandemic demand, supply chain disruptions, and the war in Ukraine appears to have subsided.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>ECB&#8217;s Policy Outlook<\/strong>:\n<ul class=\"wp-block-list\">\n<li>The <strong>ECB<\/strong> held rates steady at <strong>2%<\/strong> last week, following eight rate cuts since <strong>June 2024<\/strong>.<\/li>\n\n\n\n<li><strong>Eurozone\u2019s Economy<\/strong>: ECB\u2019s recent assessment suggests some optimism, but the impact of ongoing U.S. tariffs on European imports raises concerns.<\/li>\n\n\n\n<li>ECB projects a <strong>modest undershooting of the 2% inflation target<\/strong> for the next <strong>18 months<\/strong>, with inflation expected to return to 2% by <strong>2027<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>U.S. Tariffs on European Exports<\/strong>:\n<ul class=\"wp-block-list\">\n<li>A <strong>15% tariff<\/strong> on most European exports will be implemented, marking the highest tariff since the <strong>1930s<\/strong>.<\/li>\n\n\n\n<li>Although the tariff rate is lower than previously threatened, it remains a significant factor in potential economic disruption.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Market Expectations<\/strong>:\n<ul class=\"wp-block-list\">\n<li><strong>Interest Rate Cuts<\/strong>: Markets now see less than a <strong>50% chance<\/strong> of another rate cut by the ECB this year.<\/li>\n\n\n\n<li><strong>Interest Rate Hike<\/strong>: Some investors are beginning to price in a potential <strong>rate hike towards the end of 2026<\/strong> due to economic uncertainty, inflation control, and U.S. tariff impacts.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<p><strong>Implications:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <strong>ECB<\/strong> appears less likely to ease further, especially with inflation stabilizing at the target.<\/li>\n\n\n\n<li><strong>Trade tensions<\/strong>, particularly U.S. tariffs, could weigh on the <strong>eurozone economy<\/strong>, but with manageable inflation, the ECB might not be under significant pressure to adjust rates.<\/li>\n\n\n\n<li><strong>U.S.-EU trade relations<\/strong> will be a key risk factor for the eurozone&#8217;s economic outlook, especially given the potential impact on growth and inflation.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Annual CPI: 2.0% (unchanged from June) Core CPI (excluding food and fuel): 2.3% Month-on-Month CPI: 0.0% (flat after a 0.3% gain in June) Key Highlights: Inflation Dynamics: Inflation remains within the European Central Bank\u2019s (ECB) target, easing pressure on policymakers for further rate cuts after the end of the easing cycle last month. Inflation in &hellip;<\/p>\n","protected":false},"author":9,"featured_media":90894,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,39,36],"tags":[],"class_list":["post-117314","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-global-stock-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/117314","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=117314"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/117314\/revisions"}],"predecessor-version":[{"id":117315,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/117314\/revisions\/117315"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/90894"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=117314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=117314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=117314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}