Core inflation in Europe expected to bounce, keep ECB on interest rate hike path

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Core inflation in Europe expected to bounce, keep ECB on interest rate hike path
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Headline annual inflation is seen softening to 5.6%, Core figure is likely to rebound.The Harmonized Index of Consumer Prices , a measure of inflation, for the, will be released on Friday, June 30.

Back in May, inflation in Europe declined sharply to 6.1% vs. April’s 7.0% print, according to the data published by Eurostat. The Core HICP inflation dropped to 5.3% YoY in May as against the expected 5.5% clip, down from the 5.6% figure booked in April. The data suggested that disinflation occurred in every major component in May. However, the fall in the core inflation was partly driven by Germany’s EUR49 travel pass.

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