A shopper in a Barcelona supermarket. Euro zone inflation slowed to 2.5 per cent in June, but policymakers will remain concerned by strong increases in services prices that partly offset weaker growth in energy and fresh food costs. Photograph: Angel Garcia/BloombergEuro zone inflation slowed to 2.5 per cent in June, but policymakers will remain concerned by strong increases in services prices that partly offset weaker growth in energy and fresh food costs.
Slowing price rises in the 20 countries that share the euro will provide some relief for the European Central Bank , which last month started to cut interest rates in expectation of inflation hitting its 2 per cent target by next year. ECB president Christine Lagarde said the bank would “take time” to gauge if inflation had been tamed because of high uncertainty about “how the nexus of profits, wages and productivity will evolve and whether the economy will be hit by new supply-side shocks”.
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Euro zone inflation slows to 2.5% in JuneThe euro zone's annual rate of inflation cooled in June in line with analysts' expectations thanks to a slowdown in food and energy price rises, official data showed today.
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