Latest data released by Eurostat – 30 July 2021
- Prior +1.9%
- Core CPI +0.7% vs +0.8% y/y expected
- Prior +0.9%
The headline reading climbs above the ECB target and the trend is likely to keep that way amid rising cost inflation and base effect adjustments (higher oil prices part of the picture). The central bank will continue to brush all of this aside as underlying inflation remains more subdued with the core reading falling to +0.7% y/y.