Consumer Price Growth In The Euro Area Is Lower Than Expected, The Biggest Decline In Shoes And Clothing.

The value of the euro zone consumer price index (CPI), which was announced on Thursday, was revised down to 0.2% at the end of July, giving people more reason to believe that inflation in the euro area has reached its peak and will begin to decline.

But the annual rate of price growth in the euro area has gone beyond the target of less than 2% of the theEuropeanCentralBank for 11 months in a row, limiting the space for the central bank to cut interest rates in the current period of economic contraction.

Data released by the European Union statistics bureau (Eurostat) on Thursday showed that the CPI value of the 15 countries in the euro area fell by 0.2% in July, down 0.1% from the expected rate, and the annual growth rate was 4%, lower than the previous forecast of 4.1%.

In June, the monthly price increased by 0.4%, and the annual increase was 4%.

The data also showed that by the end of July, pportation, food and housing prices had the biggest pressure this year, and the biggest pressure on inflation was the cost of communication and clothing.

Another data released on Thursday showed that the euro area's gross domestic product (GDP) contracted in the second quarter, down 0.2%, while the first quarter increased by 0.7%.

GDP increased by 1.5% in the second quarter, down from 2.1% in the first quarter.

DaraghMaher, a foreign exchange strategist at CalyonCapitalMarketsResearch, a market research firm, said: "the market is concerned about economic growth, while the European Central Bank is concerned about inflation.

But the ECB still seems to be committed to controlling inflation at its 2% target. In order to resist inflationary pressures, the central bank raised interest rates by 25 benchmark points to 4.25% in July.

According to the data released by the European Union statistics bureau, the core CPI monthly rate of July excluding energy, food, alcoholic beverages and tobacco decreased by 0.5%, with an annual rate of 1.7%.

Excluding tobacco prices in July, the CPI rate fell by 0.2%, with an annual rate of 4.1%.

The EU Bureau of statistics also said that entertainment and culture, as well as hotels and restaurants in July, the main factor in the rise in price month rate, and clothing, household equipment and communications costs fell the most.

The European Union statistics bureau said at a news conference that, especially for package holidays, energy prices for residential services and pportation increased the most, while clothing and footwear prices fell the most.

In addition, the euro area's lowest inflation countries are Holland, Portugal and Germany.

Consumer prices rose by 3%, 3.1% and 3.5% respectively.

The country with the highest inflation in the year is Slovenia, and its annual price rises by 6.9%.