According to the first estimate, euro zone CPI inflation stabilized in June, in line with expectations. The headline index stabilized at 2.4% Y/Y, after showing a downward surprise in May.
Earlier released national data in Germany, Belgium and Spain surprised mostly on the downside of expectations, but this was offset by a significantly higher reading in Italy, where inflation unexpectedly pick up to 3.6% Y/Y. Nevertheless, euro area inflation has eased considerably from last year’s peak of 3.0% Y/Y, giving the ECB room to cut rates further this week.