Eurozone Inflation Rises In June

Eurozone Inflation Rises In June

Eurozone inflation accelerated in June as prices of energy decreased at a slower pace, preliminary data from Eurostat showed Tuesday.

Inflation rose to 0.3 percent from 0.1 percent in May. Economists had forecast the rate to remain unchanged at 0.1 percent.

Headline inflation continued to remain well below the European Central Bank’s target of “below, but close to 2 percent.”

Excluding food, alcohol and tobacco, core inflation slowed marginally to 0.8 percent from 0.9 percent in May. The rate came in line with expectations.

On a monthly basis, the harmonized index of consumer prices gained 0.3 percent in June.

The decline in energy prices slowed to 9.4 percent from 11.9 percent in May. Non-energy industrial goods logged a steady price growth of 0.2 percent.

Food, alcohol and tobacco prices climbed at a pace of 3.1 percent after rising 3.4 percent. Likewise, services cost gained 1.2 percent, slower than May’s 1.3 percent increase.