FRANKFURT (Reuters) – Euro zone price inflation slowed again in June, for the third month in a row, on the back of lower energy prices and slower food price increases, show data released on Friday.
Prices rose by 5.5% over one year this month in the 20 countries sharing the European currency, after +6.1% in May, according to the first estimate by Eurostat, the European statistics institute.
Economists polled by Reuters expected inflation to decelerate to 5.6%.
Excluding the more volatile items of unprocessed food and energy, inflation slowed to 6.8% from 6.9% last month and a consensus of 6.7%.
On the other hand, the rise in prices excluding food, energy, alcohol and tobacco accelerated again to 5.4% after 5.3% in May and a consensus of 5.5%.
Looking at the evolution of core inflation, the European Central Bank is unlikely to pause its monetary policy and a ninth interest rate hike is expected in July and possibly another in September.
(Report Francesco Canepa, Claude Chendjou, edited by Blandine Hénault)
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