According to the Statistical office of the European Union (Eurostat), annual inflation rate in June for the euro area and the European Union increased by 0.3% (May 2020: 0.1%) and 0.8% (May 2020: 0.6%), respectively. Notably, Eurostat highlighted that in the month of June, “COVID-19 containment measures have been gradually lifted.” However, a year earlier the inflation rate was 1.3% and 1.6% for euro area and European Union, respectively.

The lowest annual rates were observed in Cyprus (-2.2%), Greece (-1.9%) and Estonia (-1.6%). The highest annual rates occurred in Poland (3.8%), Czechia (3.4%) and Hungary (2.9%). In comparison to May, annual inflation declined in seven Member States but increased in twenty.

Furthermore, Eurostat noted that, “food, alcohol & tobacco (+0.60 percentage points, pp), followed by services (+0.55 pp), non-energy industrial goods (+0.05 pp) and energy (-0.93 pp)” contributed the most to the upward movement of the euro area inflation rate for the June 2020.

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