In the absence of good news, the eurozone has to settle for a narrow escape: inflation remained stable at 2,7% in June. According to data provided by Eurostat, the strongest increase continues to concern energy (+10,9% on an annual basis), which is affected by the past increases in oil prices. Closely correlated to this item is that of transport, which last month registered a +5,3%. The prices of household goods also rose sharply (+4,8%), while foodstuffs recorded a general +2,7%, in line with the average figure. The only item in decline is that of telecommunications (-1,2%).
The ECB reiterated today that rising inflationary risks justify last week's interest rate hike. The cost of money rose by 0,25%, up to 1,50%. “It is essential that the recent evolution of prices – reads the latest institute report – does not produce generalized inflationary pressures in the medium term”. The ECB forecasts that the average inflation index in the euro area will remain above 2% in the coming months as well.
