Euro zone inflation softened in June as energy prices were weaker and food prices rose less steeply. Other economic data from the region was relatively unchanged but could Greece change all that? Sonia Legg reports.
The race to keep Greece in the euro is entering the final straight. So maybe the extra second being added to world clocks at midnight by the Paris Observatory - at the very moment Athens' bailout package expires - will make a difference. The Greek crisis is certainly impacting almost everything else, including euro zone inflation which moved away from the ECB's target - slightly, dropping 0.1 percent to 0.2 percent. Michael Hewson is from CMC Markets. (SOUNDBITE) (ENGLISH) CMC MARKETS, MARKET ANALYST, MICHAEL HEWSON, SAYING: "I think the uncertainty surrounding the Greek crisis is having a dampening effect on price pressures and I would suggest it is probably going to take a few more months before we are going to get some idea of whether of not the QE that was started in March is starting to have the trickle down effect that we expect it to have." Elsewhere the latest data suggested it's all pretty much business as usual. German unemployment fell for a ninth month in a row in June - holding steady at a record low of 6.4 percent. That reinforced hope that consumer spending will continue to drive growth. Ireland's consumer sentiment was the only other real mover - hitting a nine-year high on the promise of tax cuts So could Greece scupper the revival? (SOUNDBITE) (ENGLISH) CMC MARKETS, MARKET ANALYST, MICHAEL HEWSON, SAYING: "It's like background music in an elevator - it's been going on for so long now and essentially given the fact that the Greek economy only makes up around 1 percent of euro zone GDP I think to a certain extent it has been ring-fenced if you like." But the region's revival remains pretty slow going - much like watching the clock.