Eurozone Consumer Prices Post 1st Rise Since January


Consumer prices in the Euro Area are expected to rise by a meager 0.1 percent on the year in June of 2016, following a 0.1 percent drop in the previous month and beating market expectations, according to preliminary estimates. It was the first rise in five months, as higher prices of services, food and industrial goods pushed up inflation while cost of energy fell at a slower pace.

Looking at the main components of euro area inflation, services is expected to have the highest annual rate in June (1.1 percent, compared with 1 percent in May), followed by food, alcohol and tobacco (0.9 percent, stable compared with May), non-energy industrial goods (0.4 percent, compared with 0.5 percent in May) and energy (-6.5 percent, compared with -8.1 percent in May).

Core inflation rate, which excludes prices of energy, food, alcohol and tobacco is expected to accelerate to 0.9 percent compared to 0.8 percent in the previous month. 

Eurozone Consumer Prices Post 1st Rise Since January


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
6/30/2016 10:13:04 AM