Euro Zone Inflation Drops to 2.5% with Core Print Below Expectations

Money | July 2, 2024, 4:24 a.m.

In June, headline inflation in the euro area dropped to 2.5%, as reported by the EU's statistics agency. This aligns with economists' expectations and marks a slight decrease from May's 2.6%. Core inflation, which excludes volatile factors, remained at 2.9%, close to the 2.8% forecast by experts. The services sector saw a steady 4.1% inflation rate. Following the European Central Bank's recent interest rate cut, investors are analyzing these numbers to predict future rate changes in the eurozone. Energy market volatility has contributed to fluctuations in the consumer price index this year, with energy inflation at 0.2% in June compared to previous months. ECB Vice President de Guindos emphasized the uncertainty ahead, stating that while the bank aims for 2% inflation, the path of monetary policy is not predetermined.