World Economy

Eurozone Returns to Inflation

Eurozone Returns to InflationEurozone Returns to Inflation

Eurozone annual inflation gradually increased throughout June, moving from -0.1% to +0.1% compared to the previous month, according to the latest Eurostat data, Investment Europe reported. Nevertheless, inflation levels are still below those of the previous year, in June 2015, inflation was at 0.2%. The slight increase of prices was largely driven by the services sector, where prices increased to +1.1% month on month, whilst prices for food and tobacco remained stable. The fall of energy prices slowed down somewhat, from -8.1% in May to -6.4% in June. Countries in Southern and Eastern Europe continued to show persistent levels of deflations, with prices in Cyprus falling by -2%, followed by Bulgaria, Croatia and Spain. Inflation was the highest in Belgium, where prices increased by 1.8%, followed by Sweden. However, Portugal and Malta also saw price increases of 0.7% and 1% respectively.