Eurozone Inflation Rises Slightly to 2 Percent

In June, the European statistics agency Eurostat reported a preliminary estimate of inflation in the eurozone, which rose slightly to 2 percent on an annual basis.

In May, daily life in the eurozone became 1.9 percent more expensive. The increase in consumer prices in the eurozone is, therefore, in line with the European Central Bank’s (ECB) target of 2 percent.

Inflation is mainly due to price increases in the services sector. Services became 3.3 percent more expensive last month, compared to an increase of 3.2 percent in May.

The price increase for food, alcohol and tobacco was slightly lower at 3.1 percent than the 3.2 percent a month earlier. Energy prices fell again in June, but fell less sharply at 2.7 percent than in May (minus 3.6 percent).

Core inflation in the euro area, excluding volatile energy, food, alcohol and tobacco prices, remained unchanged at 2.3 percent.