Just now, the consumer prices of the Eurozone for the month of June were published as a preliminary announcement. They rise by 0.3 per cent year-on-year after +0.1 per cent in May. There is a “battle” between food prices and the oil price. That is now recovering after its brutal crash in spring, is also comparable to the purely German data. At -9.4 percent, consumer prices for energy are still showing significant year-on-year declines. But in May the figure was still -11.9 percent.
This contraction in the decline in energy prices for end customers and the continuing relatively high rate of increase in food prices (3.1 percent after 3.4 percent in May) ensures that the overall average can rise from +0.1 percent to +0.3 percent. Within the individual member states there are countries where the overall average is already in deflation. Spain is currently in the process of deflation with -0.3 percent, Greece with -1.7 percent, and Italy with -0.4 percent.