• Prior +3.0%
• HICP +2.9% vs +2.8% y/y expected
• Prior +3.0%

Italy’s preliminary inflation data for July ticked slightly higher. According to the preliminary estimate, Italy’s headline CPI rose 2.8% year-on-year in July, matching market expectations and slowing from the previous 3.0% pace. The harmonized measure of inflation (HICP), which is used by the ECB to compare price developments across the euro area, increased 2.9% year-on-year, slightly above the 2.8% consensus forecast but down from the prior 3.0% reading.

From a broader perspective, the data is unlikely to materially alter expectations for ECB policy, especially after the Eurozone Core CPI Y/Y beat expectations coming at 2.5% vs 2.4% expected. This will keep expectations for a rate hike in September alive.

This article was written by Giuseppe Dellamotta at investinglive.com.