Eurozone: Eurozone price pressures rise in July
August 18, 2016
More complete data released by Eurostat on 18 August confirmed that harmonized inflation came in at 0.2% in July, marking the highest rate since January. The result was above the 0.1% reading tallied in June and was in line with the preliminary estimate. According to Eurostat, the main contributors to July’s higher reading were increased prices for food, alcohol and tobacco along with services.
Core inflation rested at June’s 0.8% in July. In addition, annual average inflation was steady at June’s 0.1%. Meanwhile, harmonized consumer prices decreased 0.6% in July on a monthly basis, which contrasted June’s 0.2% rise.
Looking at the countries in the common-currency bloc, 9 of the 19 Eurozone economies showed inflation rates equal to or above the regional average. Belgium (2.0%), Malta (0.9%) and Estonia (0.8%) were the economies with the highest rates. In contrast, Slovakia (-0.9%), Spain (-0.7%) and the Netherlands (-0.6%) were the economies that registered the largest annual declines in HICP consumer prices. Among the largest economies in the Eurozone, consumer prices declined annually in Italy. Meanwhile, inflation picked up in France and in Germany.