Inflation in euro area slows to lowest since Jan 2022

Consumer prices in the eurozone rose by 5.5 per cent year-on-year in June, according to a preliminary estimate by the European Union's Statistics Office.

So inflation slowed from 6.1 per cent in May and fell to its lowest level since January in 2023, Interfax reports.

Analysts polled by Trading Economics predicted on average a more moderate slowdown, to 5.6 per cent.

Energy costs in the euro area fell 5.6per cent year-over-year in June after a 1.8 per cent decline in May. The rise in food, alcohol and tobacco prices slowed to 11.7 per cent from 12.5 per cent.

Meanwhile, the rate of consumer price growth excluding food and energy (CPI Core) accelerated to 5.4 per cent year-over-year from 5.3 per cent in May. The forecast for this indicator was 5.5 per cent.

Compared with May, consumer prices in the euro area rose by 0.3 per cent.

The European Central Bank predicts that inflation in the Eurozone will average 5.4 per cent in 2023, 3 per cent in 2024 and 2.2 per cent in 2025.