Inflation in the eurozone softened in June, the European Union's statistics office confirmed on Thursday, as energy costs weakened and price rises of food and services eased after a spike in May. Eurostat said consumer prices in the 19 countries sharing the euro were unchanged month-on-month in June for a 0.2 percent year-on-year reading, confirming its earlier estimate.
Inflation in May was 0.3 percent. Eurostat said that in June more expensive restaurants and cafes, tobacco and rents had the biggest upward impact on the overall year-on-year inflation value, while cheaper gas, heating oil and automotive fuel pulled the index down. Energy costs as a whole were down 5.1 percent, against a 4.8 percent drop in May. Excluding the most volatile components of unprocessed food and energy - what the European Central Bank calls core inflation - prices were flat percent month-on-month for a 0.8 percent year-on-year increase, against a 0.9 percent rise in May.