Euro zone inflation amounts to 2% on soaring food and energy

Euro zone inflation amounts to 2% on soaring food and energy

In June, euro zone inflation reached 2% for the first time for more than a year because of soaring food as well as energy costs. It undoubtedly provided some comfort to the EU’s key financial institution because it considers reining in its excessive economic stimulus.

Inflation in the nineteen countries that share the common currency, inched up by up to 2% from May’s outcome of about 1.9%, EU statistics office Eurostat informed on Friday. The figure turned out to be in line with general market hopes because energy prices managed to tack on.

In February last year inflation accounted for 2%.

Without unprocessed food and also volatile energy prices, inflation amounted to 1.2%, below the average estimate of market experts for no change from May’s reading of 1.3%.

Another major inflation indicator, also excluding tobacco and alcohol prices, accounted for about 1% in June, slipping from May’s 1.1% and being in line with hopes.

Energy prices managed to ascend up to 8% year-on-year. At the same time unprocessed food edged up approximately 3%.

The ECB comes up with a mission to keep inflation below, although close to 2%. However, the given task has appeared to be challenging enough, even with economic surge on its best run for a decade.

This month the European Central Bank has made up its mind to have its 2.6 billion euro bond purchase program stopped by the end of 2018. Furthermore, the key bank emphasized that interest rates would be intact by summer 2019.

However, the real threat of a global trade feud as well as the uncertain budget policies of the fresh Italian government might endanger the EU economy.

By the way, Eurostat's flash estimate for the month doesn’t come with a monthly calculation.

 

Similar

ECB Key Rate is in Focus
ECB Key Rate is in Focus

ECB is ready to take the decision about the key rate. What to expect from officials? Oil prices are high, and economy indicators demonstrate the slowing down in the strongest European economies.

What Will the Fed Decide?
What Will the Fed Decide?

The Fed is going to take a decision about the interest rate. This is the crucial news for the following week. What's going on in the markets and what to expect?

Latest news

Fed’s Rate Pause and UK Inflation Slows
Fed’s Rate Pause and UK Inflation Slows

Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera