According to a flash estimate from Eurostat, annual inflation in the euro area is expected to remain stable at 1.3% in July 2017.
Underlying inflation however is expected to increase for the second consecutive month. Excluding energy, food, alcohol and tobacco from the readings, inflation is expected to creep up to 1.2%, a 0.1% increase from 1.1% in June and potentially the strongest reading so far in 2017.
Energy is expected to experience the highest inflation (an estimated 2.2% in July up from 1.9% in June) while inflation in the services sector is expected to drop slightly to 1.5% (compared with 1.6% in June). Food, alcohol and tobacco are expected to remain stable at 1.4% and the inflation rate for non-energy industrial goods is anticipated to rise slightly to 0.5% (up from 0.4% in June).