Eurozone inflation turned positive in June as the pace of decline in energy prices slowed further, flash data from Eurostat showed Thursday.
Consumer prices edged up 0.1 percent in June from prior year, offsetting a 0.1 percent fall in May. Prices increased for the first time in five months. Prices were expected to remain flat in June.
Headline inflation has been below the European Central Bank’s target of ‘below, but close to 2 percent’ since early 2013.
Core inflation that excludes energy, food, alcohol and tobacco rose to 0.9 percent in June from 0.8 percent in May. This was the fastest rate since March 2016. Economists had forecast core inflation to remain at 0.8 percent.
The statistical office is slated to issue the final data on July 15.
Energy prices slid 6.5 percent in June after declining 8.1 percent in May. Cost of food, alcohol and tobacco remained at 0.9 percent. Services costs climbed 1.1 percent following a 1 percent rise.
The material has been provided by InstaForex Company – www.instaforex.com