With respect to price developments, according to Eurostat’s flash estimate, annual HICP inflation was 2.5% in June 2006, the same rate as in May and compared with 2.4% in April. During the second half of 2006, and on average in 2007, inflation rates are likely to remain above 2%, the precise levels depending on future energy price developments.
This assessment is supported by the Eurosystem staff projections and available public and private sector forecasts.