Eurozone Inflation Rate Picks Up to 16-Month High


The inflation rate in the Euro Area is expected to edge up to 2 percent year-on-year in June 2018 from the previous month's 1.9 percent, and in line with market expectations. It is the highest rate since February 2017, mainly boosted by higher prices of energy and food.

Looking at the main components of euro area inflation, prices are expected to rise at a faster pace for: energy (8 percent vs 6.1 percent in May); food, alcohol and tobacco (2.8 percent vs 2.5 percent), of which processed food, alcohol and tobacco (2.7 percent vs 2.6 percent) and unprocessed food (3 percent vs 2.4 percent); and non-energy industrial goods (0.4 percent vs 0.3 percent). Meanwhile, services inflation should soften to 1.3 percent in June from 1.6 percent in the previous month.

Annual core inflation, which excludes volatile prices of energy and unprocessed food and tobacco and at which the ECB looks in its policy decisions, is expected to slow to 1 percent in June from 1.1 percent in May, also in line with market consensus.

Eurozone Inflation Rate Picks Up to 16-Month High


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
6/29/2018 9:21:55 AM