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Eurozone inflation drops to 2.5 percent

2024-07-02 13:02:09Biznes SHKRUAR NGA REDAKSIA VOX

Eurozone inflation slowed to 2.5 percent in June, but policymakers will remain concerned by strong gains in utility prices, partially offsetting weaker growth in energy and food costs.

The figure for the year to June marked a slowdown from 2.6 percent in the previous month. It was in line with economists' forecast of 2.5 percent.

The slowdown in price growth in the 20 countries of the Eurozone will provide a relief to the European Central Bank (ECB), which last month began to cut interest rates in anticipation of inflation reaching its 2 percent target, up to next year.

But rate-setters will still be concerned about continued price increases in the services sector, which rose 4.1 percent on the year, matching the seven-month high reached in May, according to data published by the statistical office of the European Union, Eurostat.

Eurostat said energy inflation slowed from 0.3 percent in May to 0.2 percent in June.

Food, alcohol and tobacco inflation has been stable at 2.6 percent. Core inflation, which excludes energy and food to provide a better picture of underlying price pressures, was unchanged at 2.9 percent.

"The strong labor market means we can take time to gather new information, but we must also be aware that the growth outlook remains uncertain," said ECB President Christine Lagarde. .

Eurozone unemployment remained at a record low of 6.4 percent in May, according to separate data released by Eurostat. The number of unemployed in the bloc rose by 38,000 to 11.1 million.


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