German Commercial Bank: Eurozone inflation falls enough to prompt rate cut in September

Jinshi data, July 2nd, Vincent Stammer, an economist at Deutsche Bank, said in a report that the inflation rate in the eurozone may further decline until September, giving the European Central Bank the opportunity to cut interest rates. He pointed out that the overall inflation rate slightly decreased in June, partially offsetting the unexpected rise in May, but the sharp rise in service prices kept the core inflation rate unchanged. Stammer said that in fact, the potential upward pressure on prices seems to be consolidating, especially in the high wages of the service industry. However, he said that due to the elimination of strong base effects, the annual inflation rate before September should decrease, but by the end of 2024, the inflation rate may rise again. He added that the European Central Bank will have to critically review the trend of service prices no later than early next year.