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Euro area growth slows, inflation retreats to 17-month low

Euro area growth slows, inflation retreats to 17 month low

Data from the euro area released on Wednesday confirmed the slowdown in the second quarter growth and inflation slipped to a 17-month low, raising expectations the ECB would ease monetary policy in September.

The preliminary GDP in the 19-nation region came in at 0.2 percent growth, in line with the advanced reading, easing from 0.4 percent in the quarter ended March. The annual growth rate dropped to 1.1 percent from 1.2 percent.

The flash consumer price index (CPI) fell to 1.1 percent in July from 1.2 percent in June, while analysts had predicted a retreat to 1.0 percent.

On the upside, euro area unemployment rate fell to 7.5 percent in June, the lowest level in 11 years, compared to 7.6 percent in May.

As of 09:16 GMT, the euro traded lower for the first time in three sessions at $1.1145, ahead of the awaited rate decision by the Federal Reserve later in the day.

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