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Euro area inflation stable in July

Euro area annual inflation is expected to be 0.2% in July 2015, stable compared with June 2015, in line with market forecasts. Looking at the main components of euro area inflation, services is expected to have the highest annual rate in July (1.2%, compared with 1.1% in June), followed by food, alcohol & tobacco (0.9%, compared with 1.1% in June), non-energy industrial goods (0.5%, compared with 0.3% in June) and energy (-5.6%, compared with -5.1% in June).
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No re-escalation of ‘Grexit’ worries, PMI data suggests

Flash Eurozone Manufacturing PMI was down to 52.2 from 52.5 in June while  Flash Eurozone Services PMI Activity Index fell to 53.8 from 54.4. Analysts were predicting no change. The PMI suggests the eurozone continues to enjoy its strongest performance in terms of both economic growth and job creation seen over the past four years. The survey indicates that the economy grew 0.4% in the second quarter and sustained this steady pace at the start of the third quarter.
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Eurozone Retail Sales rose 0.2% in May

In May 2015 compared with April 2015, the seasonally adjusted volume of retail trade rose by 0.2% in the euro area, beating expectations on 0.1% increase. The 0.2% increase in the volume of retail trade in the euro area in May 2015, compared with April 2015, is due to rises of 0.4% for both “Food, drinks and tobacco” and non-food products, while automotive fuel fell by 0.7%. Read more...

Euro lower despite good PMI figures

Regardless of better than predicted Eurozone PMI figures with Flash Eurozone Services PMI Activity Index rising to 54.4 from 53.8 in May and Flash Eurozone Manufacturing PMI increasing to 52.5 from 52.2 in May euro was pushed lower. Despite the cloud of the Greek debt crisis hanging over the region, the eurozone saw economic growth accelerate to a four-year high in June.  
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