Inflation in the euro zone is confirmed, the trade surplus is falling

BRUSSELS (Reuters) – Eurozone inflation slowed in June after accelerating steadily in the first months of 2021, official data confirmed on Friday, while the bloc’s trade surplus contracted in May in due to a drop in exports.

The European Union’s statistics office Eurostat said consumer prices in the single currency bloc of 19 countries rose 1.9% in June on the year, slightly less than the increase of 2 , 0% in May, during the first slowdown since last September.

The final data confirmed a first estimate published by Eurostat on June 30.

A measure of core inflation, which excludes volatility in unprocessed food and energy, was confirmed to be stable at 0.9% in June. A narrower measure, also stripping alcohol and tobacco prices, was also confirmed at 0.9%, slightly below 1.0% in May.

The European Central Bank expects inflation to rise later in the year, but has made it clear that the acceleration is mainly due to one-off factors as the global economy recovers from the worst phase of the year. the coronavirus pandemic. Therefore, no tightening is expected and borrowing costs are expected to remain very low for years to come.

Energy prices contributed 1.16 percentage points to headline inflation of 1.9%.

In a separate statement, Eurostat said the euro area’s goods trade balance with the rest of the world recorded a smaller surplus in May than in April.

In May, the bloc exported goods worth 188.2 billion euros (222 billion euros) and imported 180.7 billion euros in goods, for a surplus of 7.5 billion euros.

In April, the surplus was 10.9 billion euros, mainly due to a higher volume of exports.

For the Eurostat release, click on:

($ 1 = 0.8471 euro)

(Reporting by Francesco Guarascio @fraguarascio; editing by Philip Blenkinsop)

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