Euro-area consumer prices stable at 2.4%

Source: Dukascopy Bank SA
"Food commodity prices represent the key upside risk to consumer prices, both in the euro zone and beyond"
- Catherine Colebrook, a BNP Paribas euro-zone economist

Consumer prices in the Eurozone were unchanged in July, said the European statistics office on Thursday. Year-on-year inflation remained at 2.4 per cent, above the ECB's target of 2 per cent. Month-on-month prices fell 0.5 per cent, after declining 0.1 per cent in June.

"Looking ahead, there could be some upward pressure, and real incomes could be squeezed further," said Hetal Mehta, European economist for Legal & General investment management.

"Food commodity prices represent the key upside risk to consumer prices, both in the euro zone and beyond," said Catherine Colebrook, a BNP Paribas euro-zone economist.

The Stoxx Europe 600 Index gained 0.32 per cent to 271.22. Germany's DAX Index advanced 0.71 per cent and France's CAC 40 Index edged higher 0.91 per cent.

© Dukascopy Bank SA

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