Eurozone inflation slows to 2.5% in June

Annual inflation in the euro zone fell to 2.5% in June 2024 after briefly accelerating to 2.6% in May, according to forecasts.

Prices rose at a slower pace for non-energy industrial goods (2.5% vs. 2.6%) and energy (0.2% vs. 0.3%), while inflation remained steady for non-energy industrial goods (at 0.7%) and services (at 4.1%).

Compared to the previous month, the CPI increased by 0.2%, the same level as in May. Meanwhile, annual core inflation, which excludes energy, food and tobacco, held steady at 2.9%.

Investors are now analyzing what the latest data means for the path of interest rates in the 20-nation euro zone, following the European Central Bank’s initial 25 basis point cut in June.