In the case of the European Union, price growth also accelerated slightly in July. Hungary (3.9), Poland (3.7) and the Czech Republic (3.6) reported the highest inflation rates. Greece and Cyprus, on the other hand, are drowning in 2% deflation. Prices were still falling in Estonia, Spain, Ireland, Croatia, Slovenia and Portugal. Germany has experienced total price stagnation.
If we focus on price movements month-on-month, both the euro area and the European Union have reported declines of 0.4 and 0.2 percent, respectively. Prices rose the most in July compared to June in Denmark and the Netherlands (by 0.9 percent), while the biggest price reductions were in Portugal (up 2 percent), Spain (up 1.6 percent) and Greece (down 1.4 percent).
The European Central Bank’s inflation target, expressed as a year-on-year increase in the Harmonised Index of Consumer Prices, is set at 2% . Over the past year, inflation has been closest to that target in February this year, when it reached 1.2 percent.
