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Energy prices boost euro zone inflation


Energy prices boost euro zone inflation


Rising fuel and electricity prices were the main drivers behind the annual rise in euro zone consumer prices in June.

The EU statistics office has now confirmed its earlier estimate which is that consumer prices in the 17 countries using the euro were unchanged month-on-month in June and were up 2.7 percent year-on-year, the same as in May.

Lower energy prices are likely to reduce inflation in coming months.

Eurostat said fuels for transport added 0.45 percentage points to the final annual reading, heating oil was responsible for 0.16 and electricity and gas for 0.13 and 0.10 percentage points respectively.

Motor fuel prices were 12.1 percent higher than in June last year and heating oil prices greater by 19.8 percent.

Excluding volatile food and energy costs, in what the European Central Bank calls core inflation, prices grew 0.1 percent month-on-month and 1.8 percent year-on-year, up from 1.7 percent in May.

The European Central Bank raised interest rates for a second time in three months last week and signalled a further increase is likely this year to keep the headline consumer price index below, but close to two percent.

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