In June, Eurozone inflation decelerated as initially projected, yet the European Central Bank (ECB) is anticipated to maintain its benchmark rate on Thursday due to persistently high underlying inflation.
The harmonized index of consumer prices (HICP) increased by 2.5 percent year-over-year, a slight decrease from the 2.6 percent rise observed in May. This 2.5 percent increase aligns with the preliminary estimate released on July 2.
Meanwhile, core inflation, which excludes volatile items such as energy, food, alcohol, and tobacco, remained steady at 2.9 percent in June, consistent with the preliminary forecast.
On a month-to-month basis, the HICP saw a 0.2 percent increase in June.
Breaking down the components of inflation, services registered the largest annual increase at 4.1 percent, identical to the rate in May.
Next were food, alcohol, and tobacco prices, which rose by a revised 2.4 percent, down from the 2.6 percent increase recorded the previous month. Energy price growth slowed to 0.2 percent from 0.3 percent.
Non-energy industrial goods prices showed stable growth at 0.7 percent.
The European Central Bank is scheduled to reveal its monetary policy decision on July 18. Market expectations suggest the ECB will keep its key rates unchanged and will likely withhold additional guidance concerning future policy directions.
