Inflation weakened considerably in March and April in the Eurozone, while in May it fell to just 0.1%. But, CPI (consumer price index) increased to 0.3% YoY in June, while core CPI stood at 0.8%. Construction dived hard during the lock-down months, but today’s report showed that it jumped higher in May, although the YoY number still remains negative.

Eurozone Final CPI Report

No change to the initial estimates as this reaffirms that inflation pressures in the euro area are largely flagging, with the core reading having eased to its lowest level in over a year in the month of June. The euro is keeping more perky for now as negotiations on the recovery fund begin, with EUR/USD seen higher at 1.1417 currently.

Eurozone May Construction Report

• May construction output +27.9% vs -14.6% m/m prior
• Prior -14.6%; revised to -18.3
• Construction output -11.9% y/y
• Prior -28.4%; revised to -31.0%