Eurostat, the statistical office of the European Union, released preliminary estimates just a few moments ago showing that annual inflation in the eurozone rose to 2% in June, up from 1.9% in May and in line with market expectations.
The largest contribution to inflation in May came from the services sector, which rose at an annual rate of 3.3%, up from 3.2% in May. The food, alcohol, and tobacco sector rose by 3.1%, up from 3.2%. The non-energy industrial goods index grew by 0.5%, up from 0.6% in May, while the energy index continued to decline, declining by 2.7%, from 3.6%, for the fourth month.
The core index, excluding food and energy prices, remained unchanged at 2.3%, in line with expectations. The euro is trading at its highest levels since September 2021, near 1.1800, benefiting from the US dollar’s decline to its lowest levels since February 2022, trading at 96.15.