Consumer prices rose 0.3 percent on the month in June. This was enough to lift the annual inflation rate by 0.4 percentage points to 1.4 percent, matching its highest mark since April 2017.
The flash HICP largely followed suit with a 0.3 percent monthly increase that raised its yearly rate from 1.0 percent to 1.5 percent.
However, the acceleration in the annual CPI rate was largely due to the more volatile subsectors. In particular, there were significant rises in the rates for non-regulated energy products (from 5.3 percent to 9.4 percent) and both processed food (from 1.7 percent to 2.4 percent) and unprocessed food (from 2.4 percent to 3.4 percent). In addition, there was a significant increase in transport services (2.9 percent after 1.7 percent). As a result, core inflation which excludes fresh food and energy, edged just a tick higher to 0.9 percent.
Accordingly, despite the pick-up in the headline rate, underlying inflation remains on an essentially flat trend, in keeping with the longstanding sluggish upswing in economic activity.