Euro zone inflation was unchanged in July as a further decline of energy prices negated the impact of more expensive industrial goods and services, leaving the European Central Bank with more work to do.
The European Union's statistics office Eurostat said on Friday that consumer prices in the 19 countries sharing the euro rose by 0.2 per cent year-on-year in July, as in June.
Excluding energy and unprocessed food - what the European Central Bank calls core inflation - prices were up 0.9 per cent from 0.8 per cent in June.
Energy prices were 5.6 per cent lower year-on-year, a steeper decline than in June. Unprocessed food increased by 1.3 per cent in July, down from 1.9 per cent a month earlier.
Inflation for services and industrial goods accelerated, albeit the latter to just 0.5 per cent.
Eurostat’s flash estimate for the month does not include month-on-month calculations.
The euro zone ended four months of deflation in April, but inflation is still far below the European Central Bank’s target of just under 2 per cent.
Reuters
