Annual consumer price growth in Spain slowed to 1.9 percent in June from 3.2 percent in May. The country’s inflation rate thus fell below two percent, the European Central Bank’s (ECB) target level, for the first time since March 2021.
Below analysts’ expectations
But the fall in inflation was milder than analysts expected. Those polled by Reuters had estimated June inflation at 1.7 percent on average.
In Italy, inflation in June was estimated by statisticians at 6.7 percent. Inflation figures for Germany and France are not yet available.
According to the statistics office, the fall in inflation in Spain in June was mainly due to a slowdown in the growth of fuel, electricity, food and non-alcoholic beverages prices. So-called core inflation, which excludes volatile fresh food and energy prices, fell to 5.9 percent in Spain in June from 6.1 percent in May.
Estimate for June
A flash estimate of June inflation across the euro area will be published by Eurostat on Friday. Annual consumer price growth in the euro area slowed to 6.1 percent in May from 7 percent in April. The ECB is trying to bring inflation under control by tightening monetary policy. This month it raised its key interest rate by a quarter of a percentage point to four percent.
Source Czech Press Office
