Euro zone inflation was stable in July but its core measure, which is closely watched by the European Central Bank, went up to a four-year high against market expectations of a drop.

Consumer prices in the euro zone were stable at 1.3% y/y in July, unchanged from June and in line with forecasts, but core inflation, which excludes unprocessed food and energy, the two most volatile components, jumped to 1.3% from 1.2% in June, against market expectations of a drop to 1.1%, hitting lowest level since August 2013.

Unemployment in the euro bloc dropped to its lowest level since 2009 at 9.1% in July vs 9.2% f/c / previous month, confirming the robust recovery of the euro zone’s economy and giving the ECB more ground for tightening its monetary policy in autumn.