According to Eurostat’s preliminary estimate, annual HICP inflation in the eurozone fell to 2.8% in June from 3.2% in May, indicating a clear easing in price pressures after the stronger increases seen in previous months.
The main disinflationary factor was a slowdown in energy price growth, which fell to 8.7% year on year from 10.8% a month earlier. Price growth also moderated in services and food.
At the same time, core inflation — which excludes energy, food, alcohol and tobacco — declined to 2.4% year on year from 2.6% in May.
The June data are likely to be received positively by markets, as they confirm a gradual easing of inflationary pressure despite ongoing geopolitical uncertainty.
The reading strengthens the case for the European Central Bank to maintain a more neutral stance in monetary policy in the coming months.
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