A June measurement of 8.1 % and projections of 8.4 % put the inflation rate at 8.6 %. Core inflation, which excludes the cost of gasoline and food, decreased from 3.8 % in May to 3.7 % for the month ended.
Energy is anticipated to have the heaviest yearly rate of inflation in the Eurozone countries in the previous month where energy has a rate of 41.9%, food, tobacco, and alcohol with 8.9%, as well as non-industrial goods and services with a corresponding rate of 4.3% and 3.4%. In May, the rates for energy, food (tobacco and alcohol included) and non-industrial goods and services were at 39.1%, 7.5%, 4.2%, and 3.5%, respectively.
Despite significantly slower growth all over the single market, the European Central Bank (ECB) will tend to encounter pressure to raise interest rates rapidly in the months ahead due to the unwelcome increase in inflation. The market anticipates that the ECB will raise rates by about 150 basis points by the end of 2022.
A slight advance higher following the announcement is being pulled back. On June 30, the EUR/USD reached 103.83, which was only 33 percentage points above its latest low.
According to data from retail traders, a ratio of 2.00 to 1 traders are net-long, accounting for 66.70% of all traders. While the number of traders who are net-long has decreased by 5.54% from June 30 and increased by 2.80% from the week before, the number of traders who are net-short has increased by 0.17 % and 3.39% within the same time frame.