MNI: Euro Area Inflation Edges Above ECB target in June

--EMU Flash June HICP +2.0% y/y vs May +1.9% y/y

     LONDON (MNI) - Euro area headline inflation edged higher in June, in line

with market expectations, according to a flash report published by Eurostat on

Friday.

     Headline harmonised consumer price inflation (HICP) rose to 2.0% in June

from May's 1.9%, the data showed. It was the first time since the spring of 2017

that inflation was above the European Central Bank's 'close to but below 2%'

target. 

     Before the spike in January and April 2017, the last time inflation tested

these levels was in January 2013.

     Core inflation, which excludes food, alcohol, tobacco and energy, edged

lower, down 0.1pp to 1.0 % y/y. Energy prices were estimated to have risen by

8.0% on the year, outpacing the 6.1% rise in May.

     Ahead of the release, analysts were near unanimous in expecting a higher

headline inflation reading and a lower core reading.

     Services inflation decelerated modestly, registering at 1.3% y/y, after

May's reading of 1.6%.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI London Bureau; +44 207-862-7489; email: ukeditorial@marketnews.com

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