Inflation in the euro area has held steady in June, static at an annual rate of 0.5 per cent, according to data released by Eurostat.
Fears over the disinflationary climate in the Eurozone prompted the European Central Bank (ECB) to take action this month, with president Mario Draghi delivering a package of measures aimed at stimulating the economy.
Inflation has delivered a few surprises to the downside in recent months, but HSBC analysts expected to see that "despite the recent rise in euro-denominated oil prices, Eurozone inflation should remain stable in June".
Credit Agricole's Frederik Ducrozet says that the core reading is "most important data of the week" as economy watchers hope that the currency bloc doesn't move closer towards outright deflation. That annual core inflation measure came in at 0.8 per cent in June, up from 0.7 per cent last month, leading Ducrozet to say that the "ECB can wait and see for now".
The ECB is mandated to achieve price inflation of close to, but below, two per cent. Christian Schulz, senior economist at Berenberg, says that "part of the current undershooting is clearly due to volatile components such as food and energy". While the ECB has recently announced measures to support the Eurozone economy, Schulz says that they "will surely keep the door wide open to more measures at this week's meeting".