Eurozone inflation was stable in July 2017, flash data from Eurostat showed. Consumer prices rose by 1.3% on a yearly basis, the same rate as seen in June and matching economists’ expectations.
Meanwhile, core inflation that excludes energy, food, alcohol and tobacco prices rose by 1.2% from a 1.1% increase in June. Energy prices jumped by 2.2% last month after rising by 1.9% in June. Food, beverages and tobacco prices advanced by 1.4%, at the same pace as in the previous month. Services costs increased by 1.5% following a 1.6% rise a month before.
The European Central Bank left its benchmark interest rate on loans at zero, the deposit rate at minus 0.40 percent, and the rate on margin loans at 0.25%
According to the regulator, it will keep buying €60 billion of assets each month until December 2017, and longer if needed. Inflation depends on the weakness of energy prices, while core inflation remains constrained in general, ECB president Mario Draghi said at the press conference. To boost core inflationary pressures, the massive monetary stimulus is still needed.
