FX.co ★ Eurozone Inflation Slows In June

Eurozone inflation eased in June, driven by a deceleration in food and energy prices, according to preliminary data released by Eurostat on Tuesday.

The harmonized index of consumer prices (HICP) recorded an annual increase of 2.5 percent, marginally down from the 2.6 percent rise observed in May. This initial estimate met market expectations.

Meanwhile, core inflation, which excludes the volatile categories of energy, food, alcohol, and tobacco, remained unchanged at 2.9 percent in June.

On a monthly basis, the HICP rose by 0.2 percent in June. Final figures are scheduled for release on July 17.

Breaking down the inflation components, services exhibited the largest annual increase, holding steady at 4.1 percent, the same rate as in May.

Food, alcohol, and tobacco prices grew by 2.5 percent, slightly slower than the 2.6 percent increase reported in the previous month. Energy prices saw a modest rise of 0.2 percent, down from 0.3 percent.

The price growth for non-energy industrial goods remained steady at 0.7 percent.