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Euro
zone prices rose 0.2 percent year-on-year, Eurostat said,
confirming its initial estimate of two weeks ago.
Month-on-month, prices fell 0.6 percent from June.
The annual rate remains well short of the European Central
Bank's target of just below 2 percent. Until the annual figure
posted a 0.1 percent rise in June, prices had not risen in the
19 countries using the euro since January.
Core inflation, which excludes the most volatile components of
unprocessed food and energy, was unchanged at 0.8 percent in
July. The narrower inflation indicator, which excludes energy,
food, alcohol and tobacco products, rose an unchanged 0.9
percent. Both were the same as initial estimates.
Energy prices fell heavily again in July, by 6.7 percent after a
6.4 percent annual drop in June and 8.1 percent recorded in May.
Month-on-month, they were 1.0 percent lower.
Prices for services, the biggest component of the euro zone
economy, rose 1.2 percent year-on-year, but the biggest increase
was in food, where unprocessed foodstuffs rose 2.9 percent
year-on-year in July, nearly double the 1.5 percent seen in
June.
Prices of fruit were 6.4 percent higher than in July last year
and vegetables 5.6 percent more expensive. A 1.6 percent annual
increase in prices set by restaurants and cafes was the biggest
contributor to the overall euro zone inflation figure.
Nonetheless, smaller economies in the east continued to lead the
dozen euro zone states which posted negative annual rates in
July, notably Bulgaria and Croatia, where prices fell 1.1
percent on the year, and Slovakia, where they were down 0.9
percent. Belgium, with inflation of 2.0 percent, and Sweden,
with 1.1 percent, led those economies where prices rose.
(Reporting By Alastair Macdonald Editing by Jeremy Gaunt)
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