Eurozone's annual inflation rises to 2% in June

By Mucahithan Avcioglu

ISTANBUL (AA) - The annual consumer inflation rate in the euro area was 2% in June, up from 1.9% in the previous month, according to flash estimates from Eurostat on Tuesday.

The figure matched both the European Central Bank's (ECB) target range and the market expectations.

The biggest upward driver of inflation was services (3.3%) in June, followed by food, alcohol & tobacco (3.1%), and non-energy industrial goods (0.5%).

On the other hand, energy prices were the biggest downward contributor to the inflation in June, down 2.7% annually.

The core inflation rate, which excludes volatile food and energy prices, rose 2.3% annually in June, matching estimates.

Estonia had the highest annual rate with 5.2% in June, followed by Slovakia and Croatia, with 4.6% and 4.4%, respectively.

On the contrary, the lowest inflation rate was seen in the Greek Cypriot Administration, with 0.5%, followed by France (0.8%) and Ireland (1.6%).

On a monthly basis, the consumer price index rose 0.3% in June, up from 0% in May.

The eurozone/euro area, or EA20, represents member states that use the EU's single currency, the euro.