Euro-Zone CPI Fails to Impress, Prices Slump in July

Euro-Zone CPI was slightly worse than expected, dropping 0.7% versus expectations of -0.6% for both the monthly and yearly figure on the back of falling energy prices. Meanwhile, the core CPI rose 1.3% from last year, which was in-line with expectations. Rising unemployment also put downward pressure on CPI, but ECB’s Trichet expects inflation to turn positive by the end of this year.