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Euro-area flash inflation: Higher service inflation
Headline inflation eased in July while core inflation remained unchanged. The numbers will not be a game-changer for the ECBs September decision, but rising services inflation is not what the ECB would like to see. Euro-area flash inflation continued to ease in July to 5.3% y/y in line with BBG consensus, down from 5.5% y/y in June. Core inflation remained unchanged at 5.5% y/y (BBG consensus: 5.4% y/y). Service inflation increased to 5.6% y/y in July from 5.4% y/y in June. Not something the ECB wants to see as services prices are the most sensitive to wage growth and may be an indication that the labour market ... (full story)