According to the data released by Eurostat on July 14th 2010, Euro are annual inflation rate felt down to 1.4%, whereas for the whole of the European Union the rate fell to 1.9%. Ireland and Latvia remained showing negative inflation rates with -2.00% and -1.6% respectively.

Euro area annual inflation was 1.4% in June 2010, down from 1.6% in May. In the whole of the European Union the value was half point higher, 1.9%, in this same month, down from 2.0% in May. A year earlier the rate was -0.1% in the Eurozone and 0.6% in the whole Union. Monthly inflation remained at 0.0% in June 2010 for Euro area, as well as in the 27 members states.

According to the data published by the statistical office of the European Union (Eurostat), the lowest annual rates in June 2010 were observed in Ireland (-2.0%), Latvia (-1.6%) and the Netherlands (0.2%), and the highest in Greece (5.2%), Hungary (5.0%) and Romania (4.3%). Compared with May 2010, annual inflation fell in fifteen Member States, remaining stable in four and raising in eight.

The lowest 12-month averages up to June 2010 were registered in Ireland (-2.5%), Latvia (-1.6%) and Portugal (-0.3%), and the highest in Hungary (5.2%), Romania (4.6%) and Poland (3.5%).

Transport at the top of annual rates, and alcohol&tobaco highest monthly rates

The main components with the highest annual rates in June 2010 were transport (3.9%) and alcohol & tobacco (3.7%), while the lowest annual rates were observed for communications (-1.1%), recreation & culture (-0.2%) and food (0.2%). Concerning the detailed sub-indices, fuels for transport (+0.45 percentage points), heating oil (+0.17) and tobacco (+0.10) had the largest upward impacts on the headline rate, while gas, cars and telecommunications (-0.09 each) had the biggest downward impacts.

The main components with the highest monthly rates were alcohol & tobacco (0.6%) and hotels & restaurants (0.3%), while the lowest were clothing (-0.9%), transport and communications (both -0.2%). In particular, fruit (+0.04 percentage points), tobacco, accommodation services and package holidays (+0.02 each) had the largest upward impacts, while garments (-0.06), vegetables and fuels for transport (-0.04 each) had the biggest downward impacts.