Eurozone: Increase in inflation moderates in June
July 16, 2015
More complete data released by Eurostat on 16 July showed that harmonized consumer prices were unchanged in June over the previous month. June’s subdued print came in below the 0.2% increase observed in May and was in line with market expectations. According to Eurostat, energy prices remained unchanged In June, while prices for food, alcohol and tobacco fell over the previous month. Inflation inched down from 0.3% in May to 0.2% in June, marking the second consecutive positive reading after four months of drops.
At a country level, 11 of the 19 Eurozone economies showed inflation rates equal or above the regional average. Malta (+1.1% year-on-year), Austria (+1.0% yoy) and Belgium (+0.9% yoy) showed the highest inflation rates, while Cyprus (-2.1% yoy), Greece (-1.1% yoy) and Slovenia (-0.9% yoy) were the Eurozone countries that showed the lowest rates. Among the largest economies in the common-currency area, in Germany harmonized inflation declined to 0.1% in June (May: +0.7% yoy), while in France in remained unchanged at May’s 0.3%. In Italy HICP inflation stabilized at May’s 0.2% in June while in Spain inflation was flat (May: -0.3% yoy).
Author: Ricardo Aceves, Senior Economist