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Inflation in the Eurozone surprisingly became stable in July

Inflation in the euro area remained stable in June, although the largest economy of monetary union - Germany, slowed the appreciation of life. This increases the likelihood that the interest rates in the euro area will be reduced next week, writes MarketWatch.

According to preliminary data, in June inflation in the euro area was at 2.4 % annually, as it was also reported in the previous month. Expectations of analysts was to slow the growth of consumer prices to 2.3%.

In June, inflation in various countries has recorded a different amendment. For example, in Germany there was a delay up to 1.7 % versus 2 % during the previous month, no change in Spain and appreciation of life remains 1.9 percent, while in Italy there is an increase in inflation from 3.2 to 3.3 %.

Stable prices in May and June increase the possibility for the European Central Bank to lower the interest rates in the euro area in its meeting next week. Currently, the interest is at a historical minimum of 1 %.

Today the euro against the dollar is rising significantly. The decisions on the first day of the summit of the EU provoked the sharpest rise of the single currency since November and during the mid-day growth in the euro continues.

At 15:20 local time one euro was exchanged for 1.2640 dollars. This is the highest level in nearly ten days.