BRUSSELS, July 15 (Reuters) - A steep drop in fuel costs drove down euro zone consumer prices year-on-year for the first time in June, data showed on Wednesday, but inflation continued to fall even without the energy factor.
Prices rose 0.2 percent month-on-month and fell 0.1 percent year-on-year, the first ever negative inflation in the euro area, the EU statistics office said. The numbers came in line with economists' expectations in a Reuters poll.
Energy prices in the 16-country zone rose 2.4 percent month-on-month, but plunged 11.8 percent in annual terms.
Eurostat said transport fuels and heating oil had the biggest impact on the year-on-year result, subtracting 0.99 percentage point and 0.45 percentage point respectively.
Prices in restaurants and cafes as well as tobacco costs had the biggest upward impact on inflation, of 0.17 and 0.13 percentage point respectively.
What the European Central Bank calls core inflation -- a measure that excludes volatile energy and unprocessed food prices -- was flat on the month. Annually, it slowed to 1.3 percent from May's 1.5 percent and 1.7 percent in April.
The ECB wants annual inflation to be just below 2 percent over the medium term. It has cut its main refinancing rate to a record low of 1 percent to boost demand in the recession-hit economy, saying inflation expectations were well anchored. (Reporting by Jan Strupczewski; Editing by Dale Hudson)