Eurozone’s yearly inflation drops according to estimates
(MENAFN) In June, the euro area saw a moderation in its annual consumer inflation rate to 2.5 percent, according to initial estimates released by Eurostat. This decline from May's 2.6 percent figure aligns with expectations among analysts and economists. Notably, energy costs showed a slight increase of 0.2 percent year-on-year in June, a marginal slowdown from the 0.3 percent rise observed in May. Meanwhile, prices for food, alcohol, and tobacco rose by 2.5 percent year-on-year, indicating a slower pace of growth compared to the previous month.
Services, which have consistently recorded the highest annual inflation rates, remained stable in June at 4.1 percent. This sector's pricing dynamics have continued to contribute significantly to overall inflation pressures within the euro area.
On a monthly basis, the consumer price index for the euro area rose by 0.2 percent in June. This monthly increase was influenced by contrasting trends in energy and services prices. Energy prices experienced a month-on-month decline of 0.8 percent, whereas services prices saw a notable increase of 0.6 percent, underscoring the varied impacts across different sectors of the economy.
Overall, the latest inflation data for the euro area indicates a moderated pace of price increases in June, driven by mixed movements in energy and service sector prices, while food and other categories maintained a steady growth trajectory.
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