Euro zone inflation remained stable at 1.9 per cent year-on-year in June, and prices rose 0.1 per cent from the previous month, the European Union's statistics office said today.
Both rates were in line with economists' expectations. Eurostat said that without volatile unprocessed food and energy prices - a measure the European Central Bank calls core inflation and watches closely - prices stayed unchanged month-on-month in June and gained 1.9 per cent annually.
The ECB wants to keep annual consumer price rises just below 2 per cent, and their growth has remained at that target since last September.
Nevertheless, the bank sees upside risks to inflation in the medium term from fast credit growth and a tightening labour market amid robust euro zone economic expansion.
In annual terms, prices in cafes and restaurants, tobacco, education, electricity and maintenance of vehicles had the biggest upward impact on the inflation index. Oils, fuels, IT equipment and telecommunications pulled the index down, Eurostat said.