Eurozone inflation slowed to 2.5 per cent in June, giving some relief to policymakers as strong increases in services prices were offset by 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.
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.
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