Euro Area Inflation Rate Up to 1.6% in June


In June, Euro Area annual inflation is expected to be 1.6 percent, up from 1.4 percent in May and down from 2.4 percent in June of 2012, according to a flash estimate from Eurostat. The speed up of inflation is mainly due to increasing food prices.

Looking at the main components of Euro Area inflation, food, alcohol and tobacco is expected to have the highest annual rate in June (3.2 percent, stable compared with May), followed by energy (1.6 percent compared with -0.2 percent in May), services (1.4 percent compared with 1.5 percent in May) and non-energy industrial goods (0.7 percent compared with 0.8 percent in May).

The core inflation rate, which excludes more volatile components such as energy, food, alcohol and tobacco, is expected to be 1.2 percent, unchanged from the previous month and down from 1.6 percent in June of 2012.

Euro Area Inflation Rate Up to 1.6% in June


Eurostat | Nuno Fontes | nuno@tradingeconomics.com
7/1/2013 10:17:11 AM