The Eurozone economy, which did not grow in the previous quarter, returned to growth in the second quarter. On the other hand, inflation receded in July, while core inflation was above the headline inflation for the first time since 2021.
While inflation decreased in the Euro Zone in July, growth data showed that economic activity recovered.
According to Eurostat data, the Eurozone economy grew by 0.3 percent in the second quarter of the year compared to the previous quarter. The expectation was 0.2 percent.
First quarter data was revised from minus 0.1 percent to 0 percent.
Again, according to the data released today, the consumer price index (CPI) decreased to 5.3 percent from 5.5 percent on an annual basis in July. The expectation was 5.4 percent. CPI on a monthly basis was minus 0.1 percent in line with the expectations. CPI increased by 0.3 percent in the previous quarter.
Core inflation fell by 0.1 percent on a monthly basis, but remained unchanged at 5.5 percent on an annual basis.
While high energy costs increased price pressures, the increase in food prices in recent months was also effective in the rise in inflation.
The European Central Bank, which has been increasing interest rates since last year to rein in inflation, increased interest rates for the 9th time since July 2021 and increased the deposit rate to 3.75% last week.