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Falling Eurozone Inflation Puts ECB Rates Peak Within Sight
The headline rate of inflation in the eurozone fell to 5.3% in July from 5.5% in June, and Fitch Ratings expects it will fall to around 4% by year-end. Energy prices have made the biggest contribution to reducing the annual rate of headline inflation from its October 2022 peak, and moderating food price inflation will continue to help lowering it heading into 2024. Core inflation, at 5.5%, has since overtaken headline inflation, making further falls more reliant on declining core inflation. Inflation momentum (as measured by the annualised three-month on three-month change in the seasonally adjusted price level) is ... (full story)