In June 2020, a month in which many COVID-19 containment measures have been gradually lifted, Euro area annual inflation is expected to be 0.3%, up from 0.1% in May according to a flash estimate from Eurostat, the statistical office of the European Union. In Cyprus inflation is expected to further drop to -2.5 from -1.4 in May. In Greece inflation is expected to fall to -1.7 in June from -0.7 in May.

Looking at the main components of euro area inflation, food, alcohol & tobacco is expected to have the highest annual rate in June (3.1%, compared with 3.4% in May), followed by services (1.2%, compared with 1.3% in May), non-energy industrial goods (0.2%, stable compared with May) and energy (-9.4%, compared with -11.9% in May).

CNA - Athanasios Athanasiou