EUROZONE DATA: Financial Flows Normalise In July After June Surge (2/2)

Upside in energy prices providing some pressure for core global FI markets in recent trade as Brent trades to fresh session highs. The BBDXY also finds a base in recent trade but still holds lower on the day. No major headline flow seen.

• Headline July HICP revised up a marginal 2 hundredths vs flash at 2.94%Y/Y with services unch to 2dp at 3.28%Y/Y, core goods a hundredth higher at 0.95%Y/Y but bigger revisions to energy (10.30%Y/Y, 31 hundredths higher than flash) offset a little but a downward revision to food, alcohol and tobacco that at 1.19%Y/Y is 6 hundredths softer than flash.
• Services at 2.48Y/Y was 12 hundredths higher than June's print. Looking through services there were increases in transport services (despite air fares falling inY/Y terms), communication and accomodation / package holidays relative to June, with housing services and recreation / repairs / personal care both broadly unchanged while mic services were a little lower. Looking at the COICOP divisions health increased from 2.50%Y/Y to 3.40%Y/Y while info and communication increased from 1.02%Y/Y to 1.77%Y/Y.
• Core goods (NEIG) were 0.95%Y/Y in July, up from 0.73%Y/Y in June. This is despite the clothing and footwear division falling to 0.22%Y/Y from 0.61%Y/Y.
• FAT fell to 1.19%Y/Y in July from 1.50%Y/Y in June. This was almost entirely due to food and non alcoholic beverages which fell to 0.81%Y/Y in July from 1.18%Y/Y. Unprocessed food was 2.41%Y/Y (3.07%Y/Y July) while processed food ex alcohol and tobacco was flat (0.00% in July from 0.23%Y/Y in June).
• For energy at 10.30%Y/Y from 8.53%Y/Y in June, electricity / gas / other fuels rose a little to 3.83%Y/Y from 3.16%Y/Y - but there was a bigger increase in transport fuels / lubricants to 18.26%Y/Y in July from 15.18%Y/Y in June.
• We will follow up with more details on the special aggregates later today.

• Spread set at MS+15bps (Guidance wasMS+17bp area)
• Books in excess of E11.25bln (incl E700m JLM interest)
• Size: EUR benchmark (MNI expects E3-4bln)
• Maturity: 15 April 2033
• Settlement: 26 August 2026 (T+5)
• Coupon: Short first
• ISIN: FI4000609516
• Bookrunners: BNP Paribas / Bofa Securities  / Danske Bank / Deutsche Bank / J.P. Morgan (DM/B&D)
• Timing: - Books to close at 10:45 LDN / 11:45 CET

From market source / MNI colour