Estimates by Eurostat or the Statistical Office of the European Union just before showed that annual inflation in the euro area rose to 8.6% in June in the preliminary reading, compared to 8.1% in the May reading, exceeding expectations that indicated a growth of about 8.5%.

The largest contribution to inflation in November came from the energy sector, which rose at an annual pace estimated at 41.9% from 39.1% in May, while the food, alcohol and tobacco index rose by 8.9% from 7.5% and the services index rose to 3.4%.

The main index, excluding food and energy prices, declined by 3.7% in June, compared to 3.8 in the May reading, while expectations were for an increase of 3.9%.

The data showed a decline in inflation in the largest economy in the euro area (the German economy) on Tuesday, by 7.6% in June on an annual basis, compared to 7.9% in May.

The euro is trading at 1.0463 levels against the US dollar.