Accurate predictions all round for eurozone price inflation

Consumer price inflation in the eurozone was 1.6 per cent in the year to June, in line with expectations and higher than the 1.4 per cent recorded last month.

The largest upward pressures came from vegetables (up 0.11 percentage points, fruit and electricity (both up 0.09 percentage points each), while the largest downward contributors were telecommunications (-0.20), and fuels for transport (-0.11).

Core inflation (excluding volatile products like food, energy, alcohol and tobacco) was up 1.2 per cent, also meeting expectations and figures from the previous month.

And to round off the good predictions, month-on-month increases in inflation were also in line with forecasts, up 0.1 per cent.

In the European Union as a whole, inflation was up 1.7 per cent, with the highest annual rates in Romania (4.5 per cent), Estonia (4.1 per cent) and the Netherlands (3.2 per cent) and the lowest in Greece (-0.3 per cent), Latvia and Poland (both 0.2 per cent).

This follows the UK reporting consumer price inflation of 2.9 per cent this morning.