Consumer Price Index

The consumer price index determines the rate of inflation from the point of view of consumers when they buy goods and services. This index is also considered one of the most watched indicators by traders and is considered a basic indicator for determining financial inflation and buying trends in society in the euro area.
A preliminary estimate showed that consumer price inflation in the eurozone fell to 5.5 percent in June 2023, down from 6.1 percent in the previous month and slightly below market expectations of 5.6 percent. The rate was the lowest since January 2022, although it remained well above the European Central Bank's target of 2.0%. In addition, the core rate, which excludes volatile items such as food and energy, rose to 5.4 percent, staying close to the recent peak of 5.7 percent and supporting the view that policymakers are likely to continue raising rates in the coming months. Energy prices fell 5.6 percent (versus -1.8 percent in May), while prices rose at a weaker pace for food, alcohol and tobacco (11.7 percent versus 12.5 percent) and non-energy industrial goods (5.5 percent versus 5.8 percent). ). On the other hand, service inflation rose to 5.4 percent from 5.0 percent. On a monthly basis, consumer prices rose 0.3 percent in June

Outlook for today's statement and how it will affect the currency

Expectations indicate that inflation data will decline to a rate of 5.5%.
If the statement is issued below expectations, it will affect the currency in a negative way, but if the statement is issued at a rate higher than expected, it will affect the currency in a positive way.

The timing of the statement

The statement will be issued at twelve noon Mecca Al-Mukarramah time