Eurozone 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. The figure for the year to June marked a slowdown from 2.6 per cent in the previous month. It was in line with economists’ forecast of 2.5 per cent in a Reuters poll.
2 per cent in June and unprocessed food prices cooled from 1.8 per cent in May to 1.4 per cent in June. Core inflation, which excludes energy and food to offer a better picture of underlying price pressures, was unchanged at 2.9 per cent. A string of major sporting and cultural events, combined with the start of the summer tourism season is expected to push up prices for many services in high demand in Europe, including hotel rooms and airline tickets.