- June final CPI +3.0% vs +3.0% y/y prelim
- Prior +3.2%
- June final HICP +3.0% vs +3.1% y/y prelim
- Prior +3.2%
Slight delay in the release by the source. The headline reading is unchanged from the initial estimate, with just a marginal revision lower to the EU-harmonised reading. Core annual inflation is seen dropping slightly as well to 1.6% in June, down from 1.7% in May.
The breakdown shows that both food price inflation and services inflation eased in June. The former fell from 3.4% to 3.3% with the latter down from 2.8% to 2.6%. So, that contributed to the drop in the core estimate as well.
Italy isn’t as worrying a spot as Spain and Germany for the ECB, with price dynamics holding somewhat similar to that of France. But with the US-Iran conflict starting back up again, complacency can be a killer if the present conditions are taken for granted.
This article was written by Justin Low at investinglive.com.