Euro area HICP inflation rose 0.3% MoM in June and accelerated to 2.0% YoY, 1.9% YoY in May in line with expectations.

• Core inflation was 0.4% MoM and 2.3% YoY, unchanged from 2.3% YoY in the previous month.
• Food, alcohol & tobacco inflation rose to 3.1% YoY from 3.2% YoY despite only a 0.1% MoM increase, with unprocessed food up 4.6% YoY.
• Energy inflation remained negative at -2.7% YoY but up from -3.6% YoY previously after an 0.1% MoM increase in June.
• Services inflation ticked up to 3.3% YoY from 3.2% YoY, with a strong 0.7% MoM gain.
• Non-energy industrial goods prices fell -0.2% MoM, keeping the annual increase low at 0.5% YoY, where it’s been for the past year.