The provisional CPI was revised slightly weaker in the final report for June. Prices rose 0.2 percent on the month, lifting the annual inflation rate by 0.3 percentage points to 1.3 percent, its highest mark since May 2017.
The flash HICP followed suit with a downwardly revised 0.2 percent monthly increase that raised its yearly rate from 1.0 percent in May to 1.4 percent, also a tick less than previously reported.
However, as signalled in the flash data, the acceleration in the annual CPI rate was largely due to the more volatile subsectors. In particular, there were significant gains 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 marked increase in transport services (2.9 percent after 1.7 percent). As a result, core inflation, which excludes fresh food and energy, was only stable at 0.8 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.