Eurozone: Inflation rises for second consecutive month
July 1, 2013
According to a flash estimate released by Eurostat on 1 July, the harmonized index of consumer prices (HICP) added 1.6% in June over the same month last year. The reading was up from May's 1.4% rate and marks the second consecutive pick-up in inflation. Month-on-month price variations, together with a more detailed set of data, will be provided on 13 July. Meanwhile, in May, consumer prices rose 0.1% over the previous month, which contrasted the 0.1% decrease recorded in April. As a result, annual headline inflation rose from 1.2% in April to 1.4% in May. Annual average inflation inched down to 2.1% from 2.2% in April. The core inflation index, which does not include prices for energy, rose 0.2% over the previous month (April: +0.0% month-on-month). Annual core inflation rose from April's 1.1% to 1.3%. At a country level, nine out of the 17 Eurozone economies posted annual inflation rates equal or above the regional average. Estonia (3.6%) and the Netherlands (3.1%) 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 (1.8%) and Germany (1.6%), whereas it was below in Italy (1.3%) and France (0.9%). 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