Consumer prices were provisionally a little softer than expected in July. A 0.3 percent monthly rise put the annual inflation rate at 2.0 percent, down a tick from its final June mark and its first decline since February.
The flash HICP was marginally stronger, posting a 0.4 percent increase versus June that left its 12-month rate unchanged at 2.1 percent.
The dip in the annual CPI rate reflected a fall in food inflation from 3.4 percent in June to 2.6 percent and it was this that dominated a slide in the total goods rate from 2.8 percent to 2.4 percent. A partial offset was provided by energy (6.6 percent after 6.4 percent). Services edged a tick firmer to 1.6 percent while rents, excluding utilities, were steady at 1.6 percent.
Today's German results increase the likelihood of little change in the overall Eurozone July inflation rate (flash data due tomorrow). More importantly however, they also hint at a slight acceleration in the key underlying rate.