European Inflation to the Highest Level in Two years. Inflation in the eurozone has risen to its highest level in two years. The price level in the euro area rose 2 per cent on an annual basis.
Eurostat statistics bureau reported in preliminary figures on Friday. In May the value was still 1.9 per cent. Energy prices rose the fastest with 8 per cent, examined to 6.1 per cent in May.
The price level in the services sector rose by 1.3 per cent. In May this was 1.6 per cent.
Core inflation fell from 1.1 per cent in May to 1 per cent in June. In core inflation, volatile prices in the energy and food sector had not taken into account.
Prices for alcohol and tobacco are also not covered.
The inflation figure is of particular importance for the European Central Bank (ECB). The ECB’s overall policy aims at inflation of just under 2 per cent in the medium term.
If inflation continues to move around this point, the ECB will further reduce the policy.