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 euro area's annual price growth rate has exceeded the target of less than 2% of the European Central Bank (theEuropeanCentralBank) for 11 consecutive months, limiting the central bank's interest rate cut in the current economic recession.

According to data released on Thursday by the European Union statistics bureau (Eurostat), the CPI value of the 15 euro area countries in July dropped by 0.2%, 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 most 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, foreign exchange strategist at CalyonCapitalMarketsResearch, a market research firm, said: "the economic growth that the market is concerned about, 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.

The data released by the European Union statistics bureau also showed that the core CPI monthly rate of July excluding energy, food, alcoholic beverages and tobacco decreased by 0.5%, and the annual rate rose by 1.7%.

Excluding tobacco prices, the CPI month rate in July dropped by 0.2%, and the annual rate rose by 4.1%.

The European Union statistics bureau also said that entertainment and culture, as well as hotels and restaurants in July, the main factor of rising prices and monthly rates, and clothing, household equipment and communications costs fell the most.

The EU 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 annual inflation rates 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%.