German inflation continues to slow in July

When measured by the harmonized index of consumer prices (HICP), ECB’s yardstick, German inflation rate in July remained at 0.1 percent, unchanged from June.

In North Rhineis thatWestphalia (NRW), the state that has a tendency to do something being a bellwether for your nationally recognized rising prices ratio, value difficulties treated effectively in to 0.2% throughout the 12 months in July from 0.at least three per cents the former 30 days.

Eurostat also reported on Friday that euro zone unemployment was 11.1 per cent for the third consecutive month in June, with the lowest rate of 4.7 per cent in Germany.

The current weakness of oil and commodity prices has increased the risk that the Eurozone could briefly dip back into deflation, IHS Global Insight Economist Howard Archer said.

Teunis Brosens, an economist at ING Bank in Amsterdam, said it “remains to be seen whether core inflation has truly embarked on an upward trend, or whether this was a one-off caused by erratic price movements of some goods and services”.

Core inflation, which strips prices of volatile items such as energy, food, alcohol and tobacco, rose to 1 per cent, up from 0.8 per cent in the year to the end of June.

Meanwhile, unemployment remained at 11.1 per cent in June across the euro area, unchanged from May.

European stocks wavered Friday, but the euro rose, after the release of inflation figures for the eurozone, which may help the European Central Bank chart its next move. Final data is due on August 14.

As expected, unemployment was highest in Greece, where over a quarter (25.6 percent) of the population were unemployed in April-the latest month for which data is available.

James Howat, European Economist at Capital Economics, said the figures were not positive: “Worryingly, surveys of employment intentions have weakened recently, suggesting that the labour market recovery will remain pretty weak”.