Euro zone June inflation slowdown confirmed, but core rate rises

© Reuters. A picture illustration taken with the multiple exposure function of the camera shows a one Euro coin and a map of Europe© Reuters. A picture illustration taken with the multiple exposure function of the camera shows a one Euro coin and a map of Europe

BRUSSELS (Reuters) – Euro zone headline inflation slowed in June but the core figure excluding volatile unprocessed food and energy rose, the European Union's statistics office said on Monday, confirming its earlier flash estimates.

Eurostat said consumer prices in the 19 countries sharing the euro rose 1.3 percent year-on-year in June, in line with market expectations, decelerating form 1.4 percent in May and 1.9 percent in April.

But its core measure of price growth, which excludes unprocessed food and energy and is closely watched by the European Central Bank, rose to 1.2 percent on the year from 1.0 percent in May.

The figure was above market expectations of a 1.1 percent rise, but matched Eurostat's earlier flash estimate released at the end of June.

On a monthly basis, headline inflation was zero in June, while core inflation was 0.2 percent, Eurostat said.

Headline inflation eased in June mostly because of the marked slowdown of energy prices, which grew by 1.9 percent year-on-year from 4.5 percent in May and 7.6 percent in April. On the month, energy prices were down 0.9 percent.

Inflation also slowed down to 1.4 percent on the year for food, alcohol and tobacco products in June from 1.5 percent in May. On the month, prices for this indicator decreased by 0.2 percent.

But inflation accelerated for services, the largest sector of the euro zone's economy, to 1.6 percent on the year from 1.3 percent in May. Month-on-month, the sector saw a 0.6 percent price rise.

Prices grew at a faster pace also for industrial goods, excluding energy, with inflation slightly picking up to 0.4 percent on the year from 0.3 percent in May, although on a monthly basis prices fell by 0.4 percent.

Disclaimer:Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

About the author