Eurostat, the European Union’s statistical office, released figures moments ago showing that annual inflation in the Eurozone rose to 2.8% in June, according to the preliminary reading, compared to 3.2% in May, falling short of market expectations.

The largest contributor to inflation in June was the energy sector, which rose by 8.7% after growing by 10.8% in May. Services increased by 3.1% from 3.5% in May, while the food, alcoholic beverages, and tobacco sector slowed to 1.6% from 1.9%. The non-energy industrial goods index remained stable at 0.9%.

The core index, which excludes food and energy prices, rose by 2.4% in June, compared to 2.5% in May (revised to 2.6%), missing market expectations of 2.5% growth.