Inflationary pressures in the eurozone continue to ease
August 14, 2023 @ 15:58 +03:00
Wholesale prices in Germany dropped by 0.2% in July and decreased by 2.8% compared to last year. These figures were lower than economists’ average forecasts, with 0.1% and 2.6% declines, respectively. This indicates a weaker inflationary pressure than expected.
![](https://fxpro.news/wp-content/uploads/2023/08/ge_inflationsnapshot_230814.png)
The main factors behind the falling prices were the lower costs of imported raw materials and energy, which enabled manufacturers and wholesalers to reduce their final prices, despite a tight labour market and higher borrowing costs.
According to recent polls of major financial media, analysts expect the ECB to raise its interest rate in September and then pause for a while. The latest inflation data reduces concerns about inflation and increases the chances of a near-term rate hike.
This is bearish news for the Euro, which has lost 0.3% of its value against the Dollar since Monday morning, reaching a low of 1.0915 – close to the levels seen in early July.
The FxPro Analyst Team