Breaking: Eurozone Preliminary HICP inflation drops to 5.3% YoY in July vs. 5.3% forecast

According to the data published by Eurostat on Monday, the annual Eurozone Harmonised Index of Consumer Prices (HICP) rose 5.3% in July vs. a 5.5% rise seen in June. The HICP inflation gauge beat expectations for a 5.3% increase.

The European Central Bank’s (ECB) inflation target is 2.0%.

The bloc’s HICP inflation data have a significant impact on the market’s pricing of the ECB interest rate path. Markets are currently pricing a 75% probability of a rate hike pause by the ECB in September.

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