Eurozone inflation stable at 0.5%

Eurozone inflation is expected to remain unchanged at 0.5% in June, according to a flash estimate from Eurostat, the EU’s statistical office.

Inflation levels remained unchanged for the ninth month consecutively mainly due to the drop in food, drinks and tobacco prices, which have fallen by 0.2% compared with May.

At the same time, services is expected to have the highest annual rate in June(1.3%, compared with 1.1% in May), followed by energy (0.1%,compared with 0.0% in May), non-energy industrial goods (0.0% stable comapred with May).

While the prolonged low inflation level, which remains far from the 2% target set by the ECB, raised concerns about the risk of deflation in the eurozone, the central bank said it does not except deflation to be a risk at present.

Eurostat in fact said that core inflation, which excludes volatile food and fuel costs, has gone up to 0.8% from 0.7% in May.



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