Euro area HICP inflation to rebound back in July

We forecast HICP to rebound back to 0.3% y/y in July although the drop in fuel prices most recently means that the risk around this forecast is slightly to the downside (cons 0.2%). Nevertheless, the ECB should be able to draw some comfort from a fourth consecutive positive headline rate, and the trend in the year to date remains consistent with their (and our) expectations for HICP to average 0.3% over 2015 as a whole. But we reiterate our view that the ECB's medium-term projections remain far too optimistic, notes RBC Capital Markets