London, Friday, 20 Junes 2023

According to a preliminary estimate, the consumer price inflation rate in the Euro Area declined to 5.5 percent in June 2023 from 6.1 percent the previous month and was slightly lower than market predictions of 5.6 percent.

The rate dropped to its lowest point since January 2022, although it was still much higher than the ECB's target rate of 2.0%. In addition, the core rate increased to 5.4 percent, maintaining close to a recent top of 5.7 percent and supporting the idea that authorities will probably keep raising rates in the coming months. The core rate excludes volatile commodities like food and energy.

While prices for food, alcohol, and tobacco increased at a slower rate than they did for non-energy industrial products (5.5 percent vs. 5.8 percent), energy costs fell by 5.6 percent (vs. -1.8 percent in May). However, the inflation rate for services increased from 5.0 percent to 5.4 percent. Consumer prices increased by 0.3 percent on a monthly basis in June.

Source: EUROSTAT // Edited by: The Decision Maker - Finance editors