According to the report from Eurostat, in June 2020, a month in which many COVID-19 containment measures have been gradually lifted, the euro area annual inflation rate was 0.3%, up from 0.1% in May. A year earlier, the rate was 1.3%. European Union annual inflation was 0.8% in June 2020, up from 0.6% in May. A year earlier, the rate was 1.6%. Meanwhile, the core figures matched market expectations and came in at 0.8% YoY during the reported month.

The lowest annual rates were registered in Cyprus (-2.2%), Greece (-1.9%) and Estonia (-1.6%). The highest annual rates were recorded in Poland (3.8%), Czechia (3.4%) and Hungary (2.9%). Compared with May, annual inflation fell in seven Member States and rose in twenty.

In June, the highest contribution to the annual euro area inflation rate came from food, alcohol & tobacco (+0.60 percentage points, pp), followed by services (+0.55 pp), non-energy industrial goods (+0.05 pp) and energy (-0.93 pp).