Eurozone: Inflation steady in June
June 29, 2012
According to a flash estimate released by Eurostat on 29 June, consumer prices in June rose 2.4% over the same month last year, based on the harmonized index of consumer prices (HICP). The reading mirrored May's 2.4% increase and marked the 19th consecutive month in which inflation has remained above the European Central Bank's (ECB) target of close to, but below 2.0%. Month-on-month price variations, together with a more detailed set of data, will be provided on 16 June. According to detailed figures for May, consumer prices fell 0.1% over the previous month, contrasting the 0.5% increase recorded in April. As a consequence, annual headline inflation edged down from 2.6% in April to 2.4% in May. The core inflation index, which does not include prices for energy, was flat over the previous month (April: +0.4% mom). Annual core inflation was 1.8% in May, inching down from April's 1.9%. At a country level, 10 out of 17 Eurozone economies recorded annual inflation rates above the regional average. Estonia recorded the highest annual inflation rate (4.1%), followed by Malta and Cyprus (both at 3.7%). At the other end of the spectrum, inflation was lowest in Greece (0.9%), Spain and Ireland (both at 1.9%). Among the other major Eurozone economies, Germany (2.2%) and France (2.3%) recorded an inflation rate below the regional average in May, while inflation was above the regional average in Italy (3.5%).
Author: Armando Ciccarelli, Head of Data Solutions