Euro zone inflation eases slightly and drops to 5.5% in June
The euro zone’s annual inflation rate dipped slightly to 5.5% in June from 6.1% the previous month, official data showed on Friday.
Despite the rate easing, the European Central Bank is expected to continue its consistent interest rate hikes, with another hike in letters in July.
Central banks in Europe, the United States and the United Kingdom are expected to continue raising interest rates until inflation drops to the 2% target, considered the best for the economy.
What do we know about the June numbers?
Energy costs have fallen while food prices have risen, EU statistics show.
Energy prices fell 5.6% after last year’s crisis, while food price inflation rose 11.7%, retreating from 12.5% in May.
Core inflation, which is a more accurate representation of longer-term price pressures, rose from 5.3% last month to 5.4%.
Russia’s invasion of Ukraine and its many repercussions came last year in the wake of the COVID-19 pandemic, sending food and energy prices soaring and prompting fears of a recession.
Source: DW
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