Eurozone CPI drifts lower in June
Eurozone consumer prices drifted lower in June in comparison to a year ago.
The single currency area’s index of consumer prices rose at an annual pace of 0.2%, following a rise of 0.3% in the prior month, according to Eurostat.
In comparison with the previous month the cost of living was flat.
At the country level the largest decline was seen in Germany, where the CPI rate declined from a pace of 0.7% in May to 0.1% in June.
Consumer prices also edged down at the ‘core’ level, with a retreat in the annual pace of price gains to 0.9% from 1.0% in May.
Versus May consumer prices excluding those for energy, food, alcohol and tobacco were also unchanged.
"Consumer prices will likely remain on a moderate recovery trend this year, before accelerating from the beginning of 2016 as energy base effects gain momentum.
"However, against the backdrop of weakening oil and food prices, we put our projected profile under review. We currently forecast headline HICP inflation to average 0.3% in 2015 and 1.3% in 2016, but risks as skewed slightly to the downside, in our view. At the core level, we do not see much risks to our forecast of +0.8% and +1.0%, respectively," economists at Barclays said in a research note e-mailed to clients.