Germany's Deutsche Bank: The eurozone is unlikely to face a significant second round of inflation effects.

Stephanie Schoenwald of the Research Department of the German Renaissance Credit Bank stated in a report that the inflation rate in the Eurozone is significantly decreasing. She mentioned that as the peak of the energy shock has passed, the possibility of significant second-round effects on the labor market can be largely ruled out. The cooling of the Eurozone inflation rate in June was faster than expected, dropping from 3.2% in May to 2.8%. "This reduces the possibility of further interest rate hikes by the European Central Bank," Schoenwald said, pointing out that the hope for a rate hike in July now seems slim. However, the possibility of further tightening of monetary policy in the future cannot be ruled out. "Only the data in the coming weeks and months can reveal how much additional price pressure the economy in that area is under from the energy prices reaching a four-month high."