Eurozone Inflation Rate Rises to 6-Month High in July



Consumer prices in the Euro Area are expected to rise by 0.2 percent on the year in July 2016, following a 0.1 percent growth in the previous month and beating market expectations of 0.1 percent gain, according to preliminary estimates. It was the highest figure since January this year, as higher prices of food and services pushed up inflation while cost of energy continued to weigh.

Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in July (1.4 percent, compared with 0.9 percent June), followed by services (1.2 percent, compared with 1.1 percent in June), non-energy industrial goods (0.4 percent, stable compared with June) and energy (-6.6 percent, compared with -6.4 percent in June).

Core inflation rate, which excludes prices of energy, food, alcohol and tobacco is expected to remain steady at 0.9 percent, the same as in the previous month.

Eurozone Inflation Rate Rises to 6-Month High in July


Eurostat | Joana Ferreira | joana.ferreira@tradingeconomics.com
7/29/2016 10:21:46 AM