Eurozone CPI back into positive territory, beats deflation

The consumer prices in the Euro zone finally defeated the deflationary pressure and swung into the green zone in June, after having battled deflation for four straight months.

The consumer price index in the 19-nation bloc rose 0.2% y/y in June, higher from 0.1% drop seen in May. Markets had predicted a rise of 0.1% in June.

Meanwhile, the core figure, excluding volatile items, rose 0.9% y/y in June, same as the 0.9% rise seen in May.

Eurostat noted, "The largest upward impacts to euro area annual inflation came from restaurants & cafés (+0.11 percentage oints), rents and tobacco (both +0.06 pp), while fuels for transport (-0.41 pp), heating oil (-0.16 pp) and gas (-0.13 pp) had the biggest downward impacts."