Eurozone: Inflation rises for second consecutive month
July 14, 2013
According to detailed figures for June, consumer prices rose 0.1% over the previous month, mirroring the figure recorded in May. As a result, annual headline inflation picked up from 1.4% in May to 1.6% in June. The reading confirmed the flash estimate released by Eurostat on 1 July and marked the second consecutive increase in inflation. The core inflation index, which does not include prices for energy, also rose 0.1% over the previous month (May: +0.2% month-on-month). Annual core inflation was 1.3% in June, unchanged from May.
Nine out of the 17 Eurozone economies posted annual inflation rates equal to or above the regional average. Estonia (4.1%) and the Netherlands (3.2%) recorded the highest annual inflation rates. At the other end of the spectrum, Greece experienced a 0.3% drop in consumer prices. Among the major economies in the area, inflation was above the regional average in Spain (2.2%) and Germany (1.9%), whereas it was below the average in Italy (1.4%) and France (1.0%).
FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 1.8% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, panellists expect inflation to average 1.7%.
Author: Armando Ciccarelli, Head of Data Solutions