Eurozone: Eurozone price pressures rise in June
July 15, 2016
More complete data released by Eurostat on 15 July confirmed that harmonized inflation came in at 0.1% in June, marking the first positive price pressures since January. The result was above the 0.1% annual fall in harmonized consumer prices recorded in May and was in line with the preliminary estimate. According to Eurostat, the main contributors to June’s reading were higher prices for restaurants and cafes as well as for rents and tobacco.
Core inflation rested at May’s 0.8% in June. In addition, annual average inflation was steady at May’s 0.1%. Meanwhile, harmonized consumer prices increased 0.2% in June on a monthly basis, which was below May’s 0.4% rise.
Looking at the countries in the common-currency bloc, 13 of the 19 Eurozone economies showed inflation rates equal to or above the regional average. Belgium (1.8%), Malta (1.0%) and Portugal (0.7%) were the economies with the highest rates. In contrast, Cyprus (-2.0%), Spain (-0.9%) and Slovakia (-0.7%) 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. While inflation picked up in France and Germany.