Inflation in the eurozone has slowed to a minimum since January 2022

Annual inflation in the eurozone countries slowed in June to 5.5% from 6.1% in the previous month, mainly due to lower electricity prices. This figure was the lowest since January 2022. 

However, core inflation, excluding volatile commodities such as food, alcohol, tobacco and energy, rose to 5.4% after a three–month slowdown (5.3% in May). Analysts note that this may encourage the European Central Bank to raise interest rates in July for the ninth time in a row.

Energy prices in the eurozone fell by 5.6% YoY, while in the previous month they fell by 1.8%. The growth of prices for food, alcohol and tobacco products slowed from 12.5% to 11.7%, and for industrial goods – from 5.8% to 5.5%.

The growth of prices for services accelerated from 5% to 5.4%, which is a record high for the eurozone. This increase reflects an increase in the cost of transport in Germany compared to last summer, when government subsidies were provided for bus and train travel.