Unpredicted Rise of Eurozone Core Inflation in July

The Eurozone core inflation reached a four-year high this July. This has been the highest level since August 2013 rose to 1.3 percent this month from 1.2 percent in the previous month. This was unexpected as the market now yearns for a market slowdown. On the other hand, the unemployment data from the eurozone dropped to its lowest since 2009 in June as that shown on Monday.

These outcomes will encourage the European Central Bank to ease their monetary policies which will be decided on Autumn and ways to extend their quantitative easing program worth 2.3 trillion euros ($2.70 trillion) since a slow core inflation and wage growth as reasons to be heedful. Nevertheless, these can be seen as a positive thing for the ECB  despite low core inflation as described by a bank economist from Morgan Stanley.