Annual inflation in the euro area eased to 2.8% in June, coming in below market expectations. Core inflation stood at 2.4%, while energy recorded the highest annual price increase among the main inflation components.
According to the preliminary data released by Eurostat, annual inflation in the euro area declined from 3.2% in May to 2.8% in June, bringing an end to the upward trend in annual inflation that had continued since January. On a monthly basis, inflation fell by 0.1%. The figure came in below market expectations, which had forecast annual inflation of 3% for June. Core inflation stood at 2.4% year-on-year and 0.2% month-on-month. Among the main inflation components, energy recorded the highest annual increase at 8.7%, followed by services at 3.2%, food, alcohol and tobacco at 1.6%, and non-energy industrial goods at 0.9%. Annual inflation was measured at 2.4% in Germany, 2.0% in France, 3.1% in Italy and 3.6% in Spain. The European Central Bank (ECB) continues to maintain its medium-term inflation target at 2%.
