The final data for consumer prices in the Eurozone for the month of June have just been reported. Year-on-year they are up 0.3 percent (expected +0.3 percent / previous month +0.1 percent). But the situation is not as uniform as one would think. Parts of the Eurozone have been in deflation for months. Spain is currently at -0.3 percent, Greece at -1.9 percent and Italy at -0.4 percent. These are joined by a number of smaller member states, which are also showing deflationary prices.
At +3.2 per cent, consumer prices for food in the Eurozone can keep the average in positive territory. Energy prices fell by a whopping 9.3 per cent year-on-year. That is responsible for the large damper on the overall average. After the Oil price shock and the recent price increases, however, the annual minus is already falling again somewhat (in May it was still -11.9 percent). So is there already a step up again in August, a step away from the danger of deflation in the overall average?