Inflation in Eurozone
Eurozone - Harmonized Inflation
Inflation falls in June
Complete data released by Eurostat on 17 July confirmed that harmonized inflation was 1.3% in June, down from May’s 1.4%. The result was in line with the preliminary estimate and is below the European Central Bank’s target of close to, but below 2.0%. According to Eurostat, prices for food, alcohol and tobacco as well as energy rose at a slower pace in June, driving easing price pressures. Annual average inflation inched up from 1.0% in May to 1.1%, the highest result since March 2014.
Core inflation came in at 1.2% in June, above May’s 1.0%. Meanwhile, harmonized consumer prices were flat on a monthly basis, after falling 0.1% in the previous month.
Looking at the countries in the common-currency bloc, the Baltics had the highest price pressures with inflation of 3.1% in Estonia and Latvia and 3.5% in Lithuania. On the other side of the spectrum, prices fell on an annual basis in Ireland, declining 0.6%. Regarding the largest economies in the Eurozone, Spain saw the highest inflation (1.6%), followed by Germany (1.5%). Meanwhile, inflation was below the region’s average in France (0.8%) and Italy (1.2%).
FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 1.6% in 2017, which is down 0.1 percentage points from last month’s forecast. For 2018, panelists expect inflation to average 1.5%.
Eurozone - Harmonized Inflation Data
|Inflation Rate (HICP, annual variation in %)||2.7||2.5||1.4||0.4||0.0|
5 years of economic forecasts for more than 30 economic indicators.
Eurozone Harmonized Inflation Chart
Source: Eurostat and FocusEconomics calculations.
|Exchange Rate||1.16||0.96 %||Jul 18|
|Stock Market||1,193||-1.05 %||Jul 18|
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July 20, 2017
The European Central Bank (ECB) decided to keep interest rates unchanged at its 20 July meeting and made no changes to its bond-buying program.
July 17, 2017
Complete data released by Eurostat on 17 July confirmed that harmonized inflation was 1.3% in June, down from May’s 1.4%.
July 12, 2017
The industrial sector in the common-currency bloc gained steam in May.
June 30, 2017
Harmonized inflation continued to fall in June, according to a flash estimate released by Eurostat on 30 June.
June 29, 2017
The European Commission (EC) reported that economic sentiment in the Eurozone increased in June, recording the best result since August 2007.