National economy Inflation weakens slightly in the eurozone as expected
Inflation in the eurozone fell slightly in June. The inflation rate fell from 2.6 percent in May to 2.5 percent, according to a second estimate released by the statistical office Eurostat in Luxembourg.
17.07.2024, 11:54
SDA
This confirmed an initial survey as expected. In a monthly comparison, consumer prices rose by 0.2 percent. While general inflation is on a slight downward trend, the core rate of consumer prices remains at a higher level.
Excluding volatile energy and food prices, the inflation rate stagnated at 2.9% in June. According to economists, core inflation describes the price trend more reliably than the overall rate.
Prices for services once again rose particularly sharply. Energy prices, on the other hand, hardly rose at all. There were clear differences in price trends in the individual eurozone countries.
The lowest inflation rates were recorded in Finland (0.5 percent), Italy (0.9 percent) and Lithuania (1.0 percent). The highest rates were recorded in Belgium (5.4 percent) and Spain (3.6 percent).
At the beginning of June, the European Central Bank (ECB) lowered interest rates for the first time following the major wave of inflation, as inflation is on a downward trend. The inflation rate peaked in 2022 at more than ten percent. However, the decline in inflation has stalled this year. Experts speak of stubborn inflation.
The ECB therefore wants to take a cautious approach for the time being and is making further interest rate cuts dependent on the development of economic data. According to experts, the ECB is unlikely to change its interest rates this Thursday.
