020 7898 0500In stark contrast to the UK’s inflation rate release, the eurozone’s did as expected and crept up to 2% in June from 1.9% the month before. This is the highest it has been for 16 months, with the main reasons being an increase in the price of energy and food. Services prices rose at a softer pace.
The euro moved sideways against the dollar throughout the day, but it made some healthy gains against sterling, as the surprising inflation data from the UK diminished expectations of an interest rate rise in August.
Construction output for May climbed to 1.8% from an upwardly revised 1.2% the month before which is some much-needed positive data from the eurozone. It is the highest growth for four months. Today there are no major economic releases from the eurozone so any movements in the single currency will likely be caused by events elsewhere.
