Euro Area Inflation Rate Slows Less Than Expected


Consumer prices in the Euro Area increased 1.3 percent year-on-year in June of 2017, easing slightly from a 1.4 percent rise in May and above market expectations of 1.2 percent. However, it is the lowest inflation rate so far this year, due to a slowdown in energy prices, preliminary estimates showed.

Energy cost rose at a much softer 1.9 percent compared to a 4.5 percent increase in May and prices of food, alcohol and tobacco also eased (1.4 percent compared with 1.5 percent). On the other hand, inflation went up for services (1.6 percent compared with 1.3 percent) and non-energy industrial goods (0.4 percent compared with 0.3 percent).

Annual core inflation, which excludes volatile prices of energy, unprocessed food, alcohol and tobacco and at which the ECB looks in its policy decisions, went up to 1.1 percent from 0.9 percent in May.

Euro Area Inflation Rate Slows Less Than Expected


Eurostat | Joana Taborda | joana.taborda@tradingeconomics.com
6/30/2017 9:16:21 AM