Eurozone inflation fell below expectations in June

The European Statistical Office (Eurostat) has released preliminary inflation data for the Eurozone for June. Accordingly, annual inflation, which was 3.2 percent in May, fell to 2.8 percent in June.

The data came in below market expectations. Expectations were for annual inflation to be at the 3 percent level in June. Thus, the upward trend in annual inflation in the region, which had been ongoing since January, has come to an end.

In June, consumer prices fell by 0.1 percent on a monthly basis. Core inflation was calculated at 2.4 percent annually and 0.2 percent monthly for the same period.

Among the main expenditure groups, the highest annual increase was recorded in energy products at 8.7 percent. Energy was followed by services at 3.2 percent, food, alcohol, and tobacco products at 1.6 percent, and non-energy industrial goods at 0.9 percent.

On a country-by-country basis, annual inflation was 2.4 percent in Germany, 2 percent in France, 3.1 percent in Italy, and 3.6 percent in Spain. The European Central Bank's medium-term inflation target for the Eurozone is at the 2 percent level.

News Source: 12punto