Eurozone Inflation


Eurozone: Inflation stable in June

June 30, 2014

According to the flash estimate that Eurostat released on 30 June, annual headline inflation—based on the harmonized index of consumer prices (HICP)—added 0.5% over the same month last year in June. The reading was in line with the 0.5% increase recorded in May and came in below market expectations of a 0.7% increase. Month-on-month price variations and a more detailed set of data will be provided on 17 July.

In May, consumer prices dropped 0.1% over the previous month, which contrasted the 0.2% increase recorded in April. The reading marked the first drop after three months of increasing prices. Annual inflation slowed from 0.7% in April to 0.5% in May. Annual average inflation inched down from 1.0% in April to 0.9% in May.

The core inflation index, which does not include prices for energy, fell 0.1% over the previous month (April: +0.1% month-on-month). Annual core inflation fell from 1.3% in April to 0.8% in May.

At a country level, 9 of the 18 Eurozone economies posted annual inflation rates equal to or above the regional average. Austria (1.5%) and Luxembourg (1.4%) recorded the highest annual inflation rates. At the other end of the spectrum, Cyprus and Greece experienced year-on-year decreases in harmonized consumer prices (-0.1% and -2.1% respectively). Among the major economies in the Eurozone, inflation came in above the regional average in France (0.8%) and Germany (0.6%), whereas it was below average in Italy (0.4%) and Spain (0.2%).

FocusEconomics Consensus Forecast participants see inflation in the Euro area averaging 0.9% in 2014, which is unchanged from last month’s forecast. For 2015, panelists expect inflation to average 1.3%.

Author:, Head of Data Solutions

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Eurozone Inflation Chart

Euro Inflation by country May 2014 1

Note: Year-on-year var. of harmonized consumer price index (HICP) in %.
Source: Eurostat

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