Inflation in the eurozone slowed to 2.5% in June, as expected

In June, consumer prices in the eurozone increased by 2.5% year-on-year, as indicated in the preliminary report of the statistical office of the European Union. 

This indicator indicates a slowdown in inflation compared to May, when annual growth was 2.6%. Analysts also predicted a decrease in the inflation rate to 2.5%.

Prices for services increased by 4.1% in June, and for industrial products — by 0.7%. These figures remained at the level of May. At the same time, the growth in prices for food, alcohol and tobacco products slowed to 2.5% from 2.6% in May, and for energy carriers — to 0.2% from 0.3%.

The consumer price index excluding the cost of food and energy (core inflation, CPI Core) remained at 2.9% in June, which is higher than the expectations of experts who predicted a decrease in core inflation to 2.8%.

The monthly increase in consumer prices in the eurozone was 0.2%, similar to the indicator in May.

Among the eurozone countries, the highest inflation in annual terms was recorded in Belgium — 5.5%, while the lowest price increase was observed in Finland — 0.6%. In Germany and France, inflation was 2.5%, in Italy — 0.9%, and in Spain — 3.5%.

The final inflation data for June will be published on July 17.