July Eurozone Inflation Unchanged At 1.3%, Core Rate Edges Higher

Eurozone unemployment rate dropped to 9.1% in June

Eurozone economy grows at double the pace of the UK in second quarter

Gross domestic product (GDP) in the euro zone increased 0.6 percent on the quarter, after a slightly downwardly revised 0.5 percent rise in the first quarter, Eurostat's data showed.

Unemployment in the eurozone fell to 9.1 percent in June, its lowest figure since February 2009, according to official data from Eurostat, the statistical office of the bloc. "France, Spain, Austria and Belgium all recorded solid growth rates".

Core inflation, the measure that strips out volatile components such as food and energy, accelerated to 1.2pc, the highest in three months.

The lowest rate was 6.7% in Germany and the highest 45.5% in Greece.

"Europeans have deserved their quiet month of August as euphoria about the eurozone economy continues to be backed up by robust growth", said analyst Bert Colijn of ING.

The findings of the latest poll are in line with a separate Reuters survey of economists published earlier in July, which showed expectations for euro zone growth was strong and a reduction in policy accommodation was in the pipeline [ECB/INT].

Unemployment in Italy fell to 11.1 percent in June compared to 11.3 percent in May.

The flash estimate for July, due on Monday, is seen stable at 1.3 percent, well short of the ECB's target of just below 2 percent.

US job creation surged by more than expected in June and is seen lower but still strong in July, a sign of labor market strength that could keep the Fed on course for a third interest rate hike this year. Most indicators point to a broadening of the economic recovery across the region, and even the stubbornly high unemployment rate appears to be setting a path of a steepening downtrend.

The European Central Bank's president, Mario Draghi, kept expectations for the rate of inflation during this summer low, and data collected during the month of July has proved him right.

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