Eurozone: Inflation inches up in June
July 31, 2018
According to preliminary data released by Eurostat on 31 July, harmonized inflation came in at 2.1% in July, up from June’s 2.0%. As a result, inflation now sits further from the European Central Bank’s target rate of just under 2.0% and July’s reading marked the highest inflation since December 2012.
According to Eurostat, higher price pressures were chiefly due to rising prices for energy. Meanwhile, price pressures for food, acohol and tobacco moderated somewhat from June. Core inflation—which strips out the volatile prices of energy and unprocessed foods—also rose, increasing from June’s 1.2% to 1.3% in July. Month-on-month price variations and a more detailed set of data will be released on 17 August.
Eurozone Inflation Forecast
FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 1.6% in 2018, which is unchanged from last month’s forecast. For 2019, panelists expect inflation to be steady at 1.6%.