Gariguette strawberries on sale at Annecy Saturday market, France.
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Euro zone inflation hit 5.5% in June, in accordance with preliminary information, coming in decrease than analyst expectations — however core inflation, which excludes power and meals, stays stubbornly excessive and rose to five.4%.
Core inflation had eased to five.3% in Might, from 5.6% in April.
Headline inflation is now at its lowest level since January 2022, Eikon information present, however stays properly above the European Central Financial institution’s 2% goal.
Falling power costs had been a major contributor to the decline in inflation. Some media studies attributed the sticky core fee to a rise in German rail ticket prices, after the nation this time final yr provided a reduced move.
The inflation figures will probably be carefully watched by the European central financial institution, which hiked rates of interest to their highest degree in 22 years on June 15. The benchmark fee moved 25 foundation factors larger to three.5%, shifting out of step with the U.S. Federal Reserve, which paused hikes at its final assembly.
The European Central Financial institution additionally revised its headline and core inflation expectations for the following couple of years throughout its rate of interest assembly. It now anticipates inflation will attain a mean 5.4% this yr, 3% in 2024 and a couple of.2% in 2025.
European Central Financial institution President Christine Lagarde mentioned Tuesday, earlier than the newest figures, that inflation was nonetheless too excessive and that it is too early to declare victory over client worth rises.
Talking on the Sintra central banking occasion in Portugal, she mentioned: “Inflation within the euro space is simply too excessive and is about to stay so for too lengthy. However the nature of the inflation problem within the euro space is altering.”