Frankfurt - Inflation in the eurozone remained well below the European Central Bank’s goal as policy makers prepare to discuss unwinding stimulus.
Consumer prices rose at an annual pace of 1.3% in July, unchanged from the previous month, Eurostat reported on Monday. Core inflation, the measure that strips out volatile components such as food and energy, accelerated to 1.2%, the highest in three months.
While the report confirms ECB President Mario Draghi’s prediction that inflation would remain near June levels in the coming months, it also reinforces his assessment that, despite the region’s booming economy, there isn’t yet a self-sustained trend. Policy maker are gearing up for an autumn debate on the future path of ECB policy.