Steady Eurozone inflation hides the massive differences across member states

Eurozone inflation has stayed flat at 1.6 per cent in the year to July, as measured by the consumer price index. Economists had forecast a rise to 1.7 per cent.

This aggregate figure hides the massive variance in inflation rates across the Eurozone's members. Estonian CPI is still above three per cent.

Howard Archer, chief UK and European economist, IHS Global Insight:

The stabilization of Eurozone consumer price inflation at 1.6% in July after it had risen to this level in June from a 38-month low of 1.2% in April reinforces belief that underlying inflationary pressures remain well contained.

Eurozone consumer price inflation is still below the ECB’s target rate of “close to, but below 2.0%” and it looks likely to hover around 1.5% for some time to come.

Jonthan Loynes, chief European economist, Capital Economics:

Although CPI inflation held steady at 1.6% in July as expected, the slight fall in the core rate from 1.2% to 1.1% underlined the weakness of underlying price pressures in the region – core goods inflation fell to just 0.4%.